By DayakDaily Team
KUCHING, July 28: The implementation of the Sales and Services Tax (SST) will not disrupt the continuity of the national construction sector, as the government has introduced a series of exemptions and proactive adjustments to mitigate its impact.
Deputy Works Minister Datuk Seri Ahmad Maslan told the Dewan Rakyat today (July 28) that several categories of construction projects are exempted from SST, including construction services for residential buildings and public facilities such as places of worship, public toilets, and recreational parks.
He explained that business-to-business (B2B) transactions are also subject to specific conditions.
“For example, a main contractor is subject to SST, but subcontractors with work valued below RM1.5 million are exempted from the tax,” he said.
Ahmad was responding to a question by Yusuf Abd Wahab (Gabungan Parti Sarawak–Tanjong Manis), who asked about measures to ensure existing projects are not affected by the SST implementation.
To ease the financial burden and ensure project continuity, Ahmad said basic construction materials such as cement, gravel, and sand will continue to be taxed at a zero rate under the sales tax.
“(Furthermore) to allow contractors time to adapt to the new regulations, the government is also providing a one-year exemption to companies undertaking existing contracts without an opportunity for price review. This exemption period starts from the SST implementation date of July 1, 2025.
“The government will also not take any prosecution or impose penalties until Dec 31, 2025,” he added.
These measures, Ahmad stressed, reflect the government’s commitment to implementing the tax prudently without stifling growth in the construction industry, which is one of the main contributors to national development. — DayakDaily
