Malaysia 10% Sales and Services Taxes Sept 2018
- May 29, 2018 | Richard Asquith
Malaysia is to reintroduce its Sales and Services Taxes (SST) from 1 September 2018, with a likely standard rate of 10%.
The Sales Tax is being reimposed to reassure financial markets that the country can cope with the lose of the GST revenues The planned high-speed railway link to Singapore has already been cancelled because of fiscal concerns.
The main differences between the two consumption taxes are:
- SST has a much narrower number of goods and services that are taxed, meaning lower revenues; and
- SST is only levied at the point of final consumption. GST, like VAT, is charged, declared and recovered in B2B transactions throughout the supply chain. This helps reduced tax fraud.
Malaysian GST scraped June 2018
It will replace the 6% Goods and Services Tax, which is being set at zero on 1 June 2018 in preparation for full withdrawal. GST was only introduced into Malaysia in April 2015. GST had superseded the existing 6% SST.