Unity govt to increase SST to 8 pct; excludes food, beverages, telecommunications

Dato Seri Anwar Ibrahim. Photo credit: Sadiq Asyraf/Prime Minister's Office

By Karen Bong

KUCHING, Oct 13: The unity government intends to raise the Sales and Services Tax (SST) rate from six per cent to eight per cent.

Prime Minister Datuk Seri Anwar Ibrahim, in announcing this during the Budget 2024 today, however, said this increase will not apply to services such as food and beverages and telecommunications.

“The government will also expand the scope of taxable services to include logistics services, brokerage, guarantee sponsors and karaoke clubs,” he said when presenting the budget in Parliament, which was broadcast live through RTM today.

In addition, Anwar informed that the government will also enforce the implementation of Capital Gains Tax for the disposal of unlisted shares by local companies based on net profit at a rate of 10 per cent from March 1, 2024.

This measure is considered after considering the input of stakeholders following engagement sessions.

“The government is also considering the exemption of Capital Gains Tax on the disposal of shares related to certain activities such as approved Initial Public Offering (IPO), internal restructuring and venture capital companies subject to set conditions,” he added. — DayakDaily