Here Are 3 New Major SST Changes Announced By MOF & How They Affect You

Follow us on Instagram, TikTok, and WhatsApp for the latest stories and breaking news.

The Finance Ministry (MOF) has announced three key amendments to the expanded Sales and Service Tax (SST)

The new changes come amid intense public backlash and industry feedback since the revision was first announced on 9 June 2025.

The changes will come into effect on 1 July 2025, alongside the rest of the revised SST structure. Below is the breakdown of what's been updated:

1. Some imported fruits are now exempt from SST

After facing criticism over taxing imported fruits, the government has confirmed that apples, oranges, mandarin oranges, and dates will now be exempt from the Sales Tax.

The MOF also reiterated that essential items, whether imported or locally produced, remain tax-exempt. These include:

• Rice
• Chicken
• Beef
• Eggs
• Vegetables
• Common local fish varieties like selar, tongkol, cencaru, and sardines (whether fresh, chilled, or frozen)

2. Beauty services removed from SST expansion

In another U-turn driven by public sentiment, the government has decided not to go ahead with plans to tax beauty services.

These include:

• Manicures and pedicures
• Facial services
• Barbers and hairdressers

The decision follows public concern that taxing these common personal services would hit B40 and middle-class Malaysians the hardest.

3. Service tax threshold raised for rental & financial services

To shield smaller businesses, the annual sales threshold for Service Tax registration has been increased from RM500,000 to RM1 million for:

• Leasing or rental services
• Financial services

This means that only businesses making over RM1 million a year in these categories will need to register for and charge Service Tax.

As a reminder:

• The Service Tax rate remains at 8%, but it applies only to fees or commission-based financial services.

This change aims to ease the burden on micro, small, and medium enterprises (MSMEs) that would have otherwise been affected.

How do these SST changes actually affect you?

If you're still wondering whether any of this hits your wallet, here's what the new updates mean for everyday Malaysians:

• No price hike on popular fruits
  Apples, oranges, mandarins, and dates are now exempt from Sales Tax, so you won't see them get pricier at the supermarket.
• Grooming stays affordable
  Barbers, hairdressers, and beauty salons are off the hook, meaning no 8% Service Tax added to your haircut, facial, or mani-pedi from 1 July.
• Fewer small businesses need to charge Service Tax
  Rental and financial service providers earning under RM1 million/year don't need to register for SST, so you're less likely to see surprise fees if you're renting office space, production gear, etc.

Bottom line? These tweaks are meant to soften the blow of SST changes and keep daily essentials, grooming, and small biz services accessible, especially for the B40 and M40.