Malaysia: No Sales and Service Tax on raw sugar, Ministry of Finance clarifies
Malaysia’s Ministry of Finance has clarified that essential imported food items such as sugar and rice will remain tax-exempt under the expanded Sales and Service Tax (SST) starting July 1, 2025. This follows public confusion over a gazetted list of taxable goods. Officials will soon release clearer guidelines to prevent further misunderstandings.
Kuala Lumpur, Malaysia: The Ministry of Finance has confirmed that essential imported food items including sugar and rice are excluded from the tax, as they are considered basic essentials, as per the expanded Sales and Service Tax (SST). The rule will come into effect on July 1, 2025, as per the spokesperson of the Ministry of Finance, reported Business Times.
The announcement comes in response to public concern after a gazetted list of taxable goods circulated online. The list appeared to include essential items like bananas, papayas, durians, dried longans, cooking oil, raw sugar, and salt—many of which were earlier identified as tax-exempt.
The confusion stemmed from the gazette’s lack of clarity in distinguishing between imported and local products, leading to uncertainty about how the tax rules would be applied.
Officials say clearer guidelines will be issued soon to help both businesses and consumers understand the changes and ensure the new tax structure is enforced fairly.
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Source : Chinimandi
