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More items exempted under SST than GST, says finance ministry


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The expanded SST, which took effect on July 1, is estimated to increase revenue by RM5 billion this year and RM10 billion in 2026.
PETALING JAYA:

A total of 1,826 items are exempted or zero-rated under the sales and service tax (SST) after its scope was expanded on July 1, says the finance ministry.

In a written parliamentary reply, the ministry said this was significantly higher than the 607 items exempted under the goods and services tax (GST) before it was abolished in 2018.

The exemptions cover basic necessities and widely used goods, including raw or unprocessed food such as chicken, beef, goat, fish, vegetables, local fruits and rice.

Processed food items such as flour, sugar, salt, white bread, milk and palm cooking oil are also exempted, along with medicines, medical devices and reading materials.

“SST also exempts livestock and pet food, basic construction materials, fertilisers, pesticides, and agricultural and livestock machinery,” the finance ministry said.

The…

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