PUTRAJAYA: The government will implement a revision of the Sales Tax rates and an expansion of the Service Tax’s scope effective from July 1, 2025, in order to strengthen the country’s fiscal position by increasing revenue and broadening the tax base.

Finance Minister II Datuk Seri Amir Hamzah Azizan said these measures are aimed at improving the quality of the social safety net without burdening the majority of Malaysians.

"The government is committed to continuing the reforms under the MADANI Economy framework. To ensure that the majority of people are not affected by the Sales and Service Tax (SST) revision, the MADANI government is taking a targeted approach to ensure that basic goods and services are not taxed.

"In addition, various facilities are also being provided to mitigate the impact on micro, small, and medium enterprises (MSMEs),” he said in a statement today.

Amir Hamzah said that complementing the MADANI Government’s efforts to stimulate the economy and strengthen the social safety net, the additional revenue from the SST enhancements will go towards further public service improvements. - Bernama