On 9 June 2025, the Ministry of Finance issued a Press Release to announce a major expansion of its Sales and Service Tax (SST) effective 1 July 2025.
The announcement was foreshadowed in Budget 2025 (albeit without much detail) to increase government revenue and support fiscal reforms. The new structure will cover a wider range of taxable services and introduce changes to the sales tax on locally manufactured and/or imported goods.
The key to understanding the expansion is the Malaysian Government’s oft-repeated statements that the expansion aims to increase revenue without burdening the ordinary man on the street.
