Ever wonder what is the list of items to be exempted from SST? Why did the government says the implementation of SST will reduce the “Rakyat” burden? Well, this is because the proposed SST only covers 38% while there were 60% of items covered by GST.
When Malaysia Custom department released news on the proposed SST framework that is to be commence on 1st September, much confusion have spread throughout the country. Therefore, our Finance Minister Lim Guan Eng has stepped out to help clear the air by highlighting some items that are exempted from SST.
Mr. Lim emphasized that the government have comprehensively reviewed the new SST framework so that it will have proportionately less impact on the lower income group.
Below are the list of highlighted items that are exempted from SST but were mostly not exempted from the GST framework.
1. Jams, i.e. kaya and fruit paste
2. Butter
3. Dairy Products
4. Tofu
5. Grains
6. Sardines
7. Coffee
8. Tea
9. Sauces (i.e. chilli sauce, tomato sauce and fish sauce)
10. Bicycles
11. Motorcycles (below 250cc)
12. Construction materials, i.e. cement, bricks and sand
13. Medical Consultation
14. Medicines
15. Ambulance services
16. Fishing vessels and other vessels for processing fishery products
In conclusion, the proposed SST framework, theoretically, should reduce the prices of daily groceries compared to the GST framework. Prices for items that are widely used among Malaysian from daily consumption (e.g. butter, kaya, grains), basic transportation to healthcare items and services are all exempted from tax. With this proposed list of SST exempted items, the government hope to reduce the burdens of lower income groups in Malaysia.
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Click on the link to know more about what is expected to happen to taxes in Malaysia after 1st of September.
You can visit this link to know the detailed list of items exempted from SST.
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