Updated SST List Of Everything That Will Cost 5% To 10% More Starting Today, 1 July

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Starting today, 1 July, the government has rolled out an expanded Sales and Service Tax (SST) that affects everything from imported fruits and truffle mushrooms to preschool fees and private healthcare

Essential items, whether imported or locally produced, remain tax-exempt. These include rice, chicken, Beef, eggs, vegetables, and common local fish varieties like selar, tongkol, cencaru, and sardines (whether fresh, chilled, or frozen), according to changes announced by the Finance Ministry.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the revamp is part of the MADANI economic reforms to strengthen government revenue, with a targeted approach that avoids putting pressure on Malaysians.

"The additional revenue will go towards improving public services, expanding infrastructure, and increasing direct aid to the people," he said during a closed-door briefing with the media.

Below is a quick breakdown of what's changing:

What's being taxed now? The government has introduced 5% and 10% sales tax tiers for selected luxury or non-essential items.

Essential items will not be affected by the SST. They include:

• Beauty services such as manicures, pedicures, facials, barbers, and hairdressers
• Chicken, beef, fish, prawns
• Local and some imported fruits like apples, oranges, mandarin oranges, dates, and vegetables
• Rice, sugar, cooking oil
• Flour, pasta, noodles, milk
• Medicine, pet food, books, journals, newspapers
• Construction materials like cement, sand, and stones
• Farming equipment and fertilisers

5% sales tax:

• King crab, salmon, cod
• Truffles
• Imported fruits, except apples, oranges, mandarin oranges, and dates
• Essential oils
• Silk
• Industrial machinery

10% sales tax:

• Racing bicycles
• Antiques and hand-painted artworks

The government has also expanded the service tax, ranging from 6% to 8%, to cover six new sectors

6% construction services tax:

For construction services, the 6% tax will apply to service providers exceeding RM1.5 million in revenue.

Residential construction and public housing-related works are exempt, and exemptions also apply to business-to-business transactions to avoid double taxation.

Additionally, there will be a 12-month grace period for existing contracts.

8% financial services tax:

This applies to fee-based or commission-based services, such as loan processing fees.

Exemptions include business-to-business transactions, basic banking services like savings and current account charges, Islamic financing, foreign exchange gains, capital markets, outward remittances, Shariah-compliant fee structures, Bursa Malaysia, and Labuan entities.

6% private healthcare tax:

Only applies to services provided to non-citizens. Malaysians are fully exempt, including traditional and complementary medicine like:

• Malay, Chinese, and Indian treatments
• Islamic medicine, homoeopathy, and chiropractic

Also exempt are allied health services like physiotherapy, audiology, and speech therapy for Malaysians.

6% private education tax:

A 6% tax will be imposed on private preschools, primary, and secondary schools that charge more than RM60,000 per year, as well as on private higher education institutions for international students.

Exemptions: Malaysian citizens and persons with disabilities.

8% leasing and rental services tax:

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 and 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.