The Malaysia Budget 2025 brings exciting new tax updates with fresh opportunities for businesses on indirect t.

This summary, prepared by Ms. Lim Nguan Lian, our Head of Client Relationship, highlights the most relevant updates on indirect tax.

Sales & Service Tax (SST)
🥦 Basic food items remain tax-exempt
📈 Higher sales tax for non-essential/luxury items
🔄 Service Tax expands to cover B2B services from 1 May 2025

Mastectomy Bras Tax Relief
💖 Exemption from 10% sales tax
📅 Application period: 1 Nov 2024 – 31 Dec 2027

Excise Duty on Sugary Drinks
🍹 New rate: RM0.40 per liter, effective 1 Jan 2025

Export Duty on Crude Palm Oil (CPO)
🌴 Duty raised to 10% if price > RM3,451/metric tonne, effective 1 Nov 2024

Windfall Profit Levy (WPL)
📊 CPO threshold raised to RM3,150 (Peninsular) and RM3,650 (Sabah/Sarawak)

Carbon Tax
🌍 Targeting iron, steel, and energy sectors by 2026