Malaysia: Reintroduction of Sales and Services Tax (SST) to Replace Goods and Services Tax (GST)

On 9 May 2018, the 14th Malaysian general election was held to elect members of Parliament of Malaysia. A new government was formed and our new Prime Minister, Tun Dr. Mahathir bin Mohamad announced that the Sales and Services Tax (SST) would be re-introduced to replace Goods and Services Tax (GST). 

The GST rate of 6% was reduced to 0% effective from 1 June 2018 and the SST is likely to be implemented effective 1 September 2018. Hence, Malaysian are enjoying “GST tax holiday” for three months from 1 June 2018 to 31 August 2018. 

On 16 July 2018, our Minister of Finance, Mr. Lim Guan Eng announced that the SST rate will be levied at 10% for sales and 6% for services. The Bill on the SST was tabled to the Parliament on August 2018 for 1st reading. 

A comparison on Goods and Services Tax (GST) and Sales and Services Tax (SST) is tabulated below:-

We hope that the reintroduction of SST will create more disposable income, boost private consumption and bring economic benefit to Malaysia.

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