The Small and Medium Enterprises Association Malaysia (SAMENTA) has expressed strong support for the Ministry of Finance’s recent revision to the expanded Sales and Service Tax (SST), calling it a significant relief for small and medium-sized enterprises (SMEs).
Datuk William Ng, President of SAMENTA, noted that the revised framework includes an increased annual sales threshold for the imposition of service tax on rental and financial services. This adjustment effectively exempts around 75 percent of SMEs from the additional eight percent tax under the newly expanded SST structure.
“When the SST expansion was initially announced, SAMENTA was among the earliest to raise concerns, particularly regarding its potential implications for SMEs,” said Ng in a formal statement.
He explained that the association had called on the government to raise the SST threshold as a means of safeguarding smaller enterprises while ensuring a broader and more equitable tax base.
In a move aligned with public and industry sentiment, the Ministry announced that it would not proceed with the proposed extension of the service tax to include beauty-related services such as manicures, pedicures, facials, as well as services provided by barbers and hairdressers.
All amendments to the expanded SST were made following extensive consideration of feedback from both the public and industry stakeholders.
Ng conveyed appreciation to Prime Minister Datuk Seri Anwar Ibrahim for taking the concerns of the SME community into account and for directing the Ministry to revise the threshold upwards.
“While we will continue to advocate for a tax policy that is balanced and conducive to SME growth, we consider this particular matter to be resolved and will not seek additional concessions with regard to the SST expansion,” he added.
Ng also advised SMEs impacted by the revised SST measures to proceed with the necessary implementation steps and to approach the Royal Malaysian Customs Department for assistance where required.
-Bernama
