Service Sector Remain 6% from GST into SST in Malaysia

However, room tariffs may not increase after the new policy is deployed from September 1, 2018.

As far as the service sector is concerned, the deployment of SST (Sales and Services Tax) starting from September 1, 2018, may not result in much of a price difference for services.

We feels that this will be because the 6 percent tax levied on services like those offered by food catering companies, insurance, and hotels will be the same like that charged by the GST (Goods and Services Tax) prior to this. In fact, prices are expected to remain the same as before for most services.

Although the Malaysian public is waiting to find out the impact of SST on the cost of other goods, the price of most services may not exhibit much of a difference.

A sales tax of 10 percent is charged on some products such as canned drinks, which are at a production stage. There is a chance of restaurants increasing their prices for covering the service tax.

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