KUALA LUMPUR: The government has extended Sales and Services Tax (SST) exemptions to residential projects and public facilities, including houses of worship, recreational parks, and public toilets.
Deputy Works Minister Datuk Seri Ahmad Maslan announced the move as part of efforts to ease financial burdens on developers and sustain infrastructure development.
Essential construction materials such as cement, gravel, and sand remain zero-rated under the sales tax.
Ahmad clarified that while main contractors are subject to SST, subcontractors earning below RM1.5 million annually are exempt.
The exemptions aim to provide relief to businesses adjusting to the tax system.
“Companies and contractors with non-reviewable contracts will receive a one-year exemption, subject to conditions,“ Ahmad said during a Dewan Rakyat session.
When asked about raising the SST registration threshold from RM1.5 million to RM3 million for construction-related services, Ahmad confirmed no discussions had taken place.
The current threshold remains in place to maintain tax compliance while supporting smaller industry players. - Bernama
