New SST vs GST: What’s the difference?

14 August 2018

Key messages

SST 2.0 the comeback kid

  • SST will be reintroduced on 1 September 2018 to replace GST
  • Proposed sales tax (10%, 5% and a specific rate for petroleum) and 6% for service tax
  • Taxable threshold set at annual revenue of RM500,000 (except for eateries and restaurants at RM1 million)

Refined version of SST in terms of scope and coverage

  • Single-stage tax is levied on manufacturers and importers
  • Narrower compared to GST though slightly wider than old SST
  • Mixed reactions for consumers and businesses
  • Shortfall of budget revenue collection of RM23 billion

Smooth transition and implementation of SST is the key

  • Continuous stakeholders’ consultations on the technical and compliance aspects of SST during the transitional period
  • Dissemination of price information and enhance consumer awareness
  • Step up price surveillance and enforcement of unreasonable price increases

Additional Info

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