KUALA LUMPUR: The Ministry of Finance (MoF) has announced that new registration applications in relation to the expansion of the service tax scope and the revision of the sales tax rate, effective from July 1, 2025, can be made starting from Aug 1, 2025.
For existing registered persons, applications for the addition of new services under the expansion of the service tax scope and tariff codes under the revision of the sales tax rate, which is effective from July 1, 2025, can be submitted beginning June 24, 2025, the ministry said in a post on X today.
On June 9, the government announced a targeted review of the sales tax rate and an expansion of the service tax scope, both of which will take effect from July 1.
The sales tax rate remains unchanged for essential goods, while a five or 10 per cent rate will be imposed on selected items.
Meanwhile, the scope of the service tax will be expanded to include six new services: leasing or rental, construction, finance, private healthcare, education, and beauty services.
Treasury secretary-general Datuk Johan Mahmood Merican reportedly said that revenue from the Sales and Service Tax (SST) collection is expected to increase by RM5 billion in 2025 and by RM10 billion in 2026, following the implementation of the SST revised and expanded scope starting next month.
