Yesterday’s headlines?
SST expansion effective 1 July 2025 (less than 3 weeks from now & phase 3 of e-invoicing)
Panic… again.

Under the Madani economic framework, the goal is simple:

1. Broaden the tax base,
2. Collect more revenue,
3. Reduce reliance on petroleum.

Sounds fair as long as it’s “targeted” and “equitable”. That’s the official line.

Personally, I still believe GST was the better system … structured, transparent, with input tax credits (at least in theory).

But we all know GST didn’t die because of accounting. It died because of politics and refund problems.

So here we are SST is back, expanded and rebranded. Not as efficient as GST, but definitely here to stay.

What’s new?
Sales Tax (CJ):

• Imported fruits, salmon, essential oils: 5%
• Racing bikes, antique art: 10%

Does my touring bicycle fall under the category of racing bikes?

What about my santai-santai road bike … also considered a racing bike?

Service Tax (CP):

• Rental/leasing: 8% (threshold RM500k)
• Construction: 6% (RM1.5mil)
• Financial services: 8%
• Private healthcare (non-citizens): 6%
• Education (tuition > RM60k): 6%
• Beauty/wellness: 8% (RM500k)

What now?

• Check your services, revenue, update pricing/contracts, register if needed.
• Take note of the 12-month relief for non-reviewable contracts.

Read the full content in our blog
https://lnkd.in/gMmE_h_G