Samenta Calls For Higher Sst Threshold To Help Smes


 The association wants the SST threshold to be raised from RM500,000 to RM2 million or exempt micro and small enterprises to protect them from rising costs.
Samenta said many small businesses are already struggling with high costs, weaker customer spending and uncertainty in export markets.PETALING JAYA: The Small and Medium Enterprises Association of Malaysia (Samenta) has called on the government to raise the sales and services tax (SST) threshold or exempt micro and small enterprises to protect them from financial pressure when the revised tax starts on July 1
Samenta chairman William Ng said the current threshold of RM500,000 in annual turnover should be raised to RM2 million so that only medium and larger businesses are affected.
He said that many small businesses are still dealing with high operating costs, weakening consumer demand and uncertainty in export markets — conditions that could get worse after the halt in US tariffs ends on July 8.
“Against this backdrop, revising the SST without sufficient exemptions or a higher threshold for SMEs risks compounding the cost burden on businesses that are least equipped to absorb it,” he said in a statement today.
William Ng.“This impact is not limited to raw material costs but extends to rent and business-to-business services that will now fall under the SST’s expanded scope.
“These increases will almost certainly be passed on to consumers, further driving up the cost of living.”
Ng also urged the customs department to immediately issue sector-specific guidelines to help SMEs determine their tax obligations under the expanded scope.
“Without clarity, many SMEs risk falling into unintentional non-compliance, despite the enforcement grace period until the end of 2025,” he said.
He also asked for clarification on whether the tax should be applied based on when invoices are issued or when payments are received, especially for invoices sent before July 1.
While supporting the idea of a fair and progressive tax system, Ng also criticised the lack of meaningful consultation with stakeholders.
“While we were given a briefing on the expanded SST, they cannot consider this a consultation when it is presented as ‘fait accompli’,” he said. - FMT


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