What is Sales & Service Tax (SST) in Malaysia?

Not sure what is SST in Malaysia? In today’s blog, we’re going to talk a lot about SST Malaysia, a tax system that is going to be implemented by our new government – Pakatan Harapan. A lot of things Pakatan Harapan wants to achieve in 100 days and one of it is to abolish GST (6%). I’m sure many of you are familiar with GST, which is a value-added tax levied on most goods and services sold for domestic consumption.

Did you know that the Malaysia’s customs department collected RM44bil from GST in 2017. And it was RM41bil in 2016.

With that being said, Pakatan Harapan will abolish GST and implement new tax system which is SST. So what is SST? You asked? Let’s keep reading.

What is SST?

Sales and Service Tax (SST) is a single stage consumption tax, levied, charged and paid on goods manufactured in Malaysia and imported.

It was first introduced on the 29th February 1972.

SST trends in Malaysia

We noticed there’s an increase in searching the keywords “SST” among Malaysia, according to the Google Trends.

SST Malaysia

The laws that governed the SST, which are the Sales Tax Act 1972 and the Service Act 1975, were repealed.

Dr M: GST out, SST in!

Tun Dr Mahathir Mohamad and Datuk Seri Wan Azizah at a news conference following the general election in Petaling Jaya May 10, 2018. — Picture by Razak Ghazali
  • Implemented since 1970s and has gone through few improments.
  • Sales tax will only be imposed at the manufacturer or consumer level. Service tax is imposed to consumers who are using tax services.
  • Some importers, manufacturers, wholesalers or retailers fail to declare their taxes through transfer pricing.
  • SST rates may vary, from 5% – 10% or specific rate (awaiting official announcement), plus 6% service tax.
  • Finance Minister Lim Guan Eng today announced that the sales and services tax (SST) rate will be set at 10% for sales and 6% for services, with the bill on the tax expected to be passed in Parliament next month. (updated)

SST at 10% for sales, 6% for services, says Lim Guan Eng

Finance Minister Lim Guan Eng announced that the sales and services tax (SST) rate will be set at 10% for sales and 6% for services, with the bill on the tax expected to be passed in Parliament next month.

We’ll keep you all updated through:

  1. Our Facebook page (SST Malaysia)
  2. Our Facebook group

Feel free to notify us in the comments section if you guys are ahead than us.

The differences between SST and GST

Below is the comparison of SST vs GST:

sst vs gst
SST vs GST Infographic

 

Download SST vs GST PDF

Conclusion

Malaysia’s government – Pakatan Harapan is going to abolish GST and replace it with SST. As for now, we do not have any clue about the GST in Malaysia yet. We’ll keep you all updated when we receive the official notice for the government.

Lastly, what do you guys think about SST? Feel free to discuss it in the comment section!

> SST Calculator <

Author: SST Malaysia

I write about SST Malaysia blog.

4 thoughts on “What is Sales & Service Tax (SST) in Malaysia?”

  1. Get is good
    It’s transparent and nobody an cheat
    SST many retailers will cheat.
    Lower GST and let it continue.
    It was hard to impliment but it is good that the government has more money to spend.
    Build better roads
    Better stadiums
    Maintainence
    More parks
    Use the money wisely.

  2. GST is a snowballing of tax at every level hitting the end consumers, with hardest impact on the poor. We need to know the Total Tax frm manufacturer to consumer. And we need to enforce tax evasion laws when lesser tax is collected.

  3. GST is good
    We need the extra fund
    Pay our cops better
    Pay our army better
    Better roads
    Rid of tolls
    Better parks
    Better stadiums
    Better roads
    MAke Malaysia Beautiful!!!

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