75 Of Small Firms Exempted From New Sst Says Trade Group

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 The Small and Medium Enterprises Association Malaysia says no further concessions will be sought from the government.
William Ng, president of Samenta, said the association was among the first to raise concerns over the potential impact of the revised sales and service tax.PETALING JAYA: About 75% of small and medium-sized enterprises will be exempted from the additional 8% levy in the revised and expanded sales and service tax (SST) that comes into force on July 1, says a business group
The Small and Medium Enterprises Association Malaysia (Samenta) said a revision to the expanded tax regime announced today effectively exempts about 75% of SMEs from the additional 8% levy.
Samenta president William Ng said the association was among the first to voice concerns over the potential impact on small businesses from the expansion of the sales and service tax scheme, Bernama reported.
The association said it would not seek further concessions from the government.
Ng thanked Prime Minister Anwar Ibrahim for taking note of their concerns and revising the threshold.
“While we will continue to advocate for a balanced and SME-friendly approach in future tax reforms, we consider this matter concluded and will not seek further concessions on the SST expansion,” he was quoted as saying.
Earlier today, the finance ministry said the threshold for service tax registration for leasing or rental and financial services had been raised from RM500,000 to RM1 million, to reduce the number of small businesses that would be affected.
Ng said the revision effectively exempts about 75% of SMEs from the additional 8% levy under the expanded tax regime. He encouraged the remaining 25% of small businesses to take steps to implement the new rates.
Last month, the finance ministry said a 5% to 10% rate would be imposed on non-essential goods from July 1, while the service tax was expanded to include rent, lease, construction, financial services, private healthcare and education.
Initially, an 8% service tax rate was to be charged for these services with a registration threshold of RM500,000. With the new revision however, businesses with sales exceeding RM1 million will be required to pay service tax on rental services. - FMT

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