By DayakDaily Team
KUCHING, June 27: The Ministry of Finance (MOF) has announced that the government will not proceed with its earlier proposal to expand the scope of the Service Tax to include beauty services such as nail treatments (manicure and pedicure), facials, haircuts, and hairdressing services.
In a statement today, the MOF said the decision was made after carefully considering public sentiment and feedback from industry stakeholders.
“Following the announcement on June 9, 2025, regarding the review of the Sales and Service Tax (SST) implementation, the Madani government has taken into account feedback received from the public and industry players on the proposed expansion,” the ministry said.
The MOF also held engagement sessions with several government-aligned members of Parliament yesterday to better understand grassroots concerns.
In a related move, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim has agreed to exempt apples, oranges, mandarin oranges, and dates from the Sales Tax, following public concerns over the taxation of imported fruits.
The MOF reaffirmed the government’s commitment to easing the cost of living, stating that essential daily goods—whether produced locally or imported—remain exempt from the Sales Tax.
These include rice, chicken, beef, vegetables, and eggs, as well as local fish such as yellowtail scad (selar), tuna (tongkol), torpedo scad (cencaru), and sardines, whether fresh, chilled, or frozen.
To further ease the burden on small businesses, the MOF also announced that the registration threshold for Leasing or Rental Services and Financial Services under the Service Tax will be raised from RM500,000 to RM1 million in annual revenue.
This means only businesses with annual sales exceeding RM1 million will be subject to the tax, allowing more micro, small, and medium enterprises (MSMEs) to benefit from exemptions.
The ministry urged all parties to make responsible public statements and rely on verified official sources for information on SST implementation.
“The public is encouraged to refer to official announcements, infographics, subsidiary legislation, guidelines, and FAQs available via the Ministry of Finance and Royal Malaysian Customs Department’s official channels,” it said. — DayakDaily
