Malaysia Expands Sales And Service Tax From July
Johnson 12 Jun 2025 11:03ENCopy link & title
The Malaysian Ministry of Finance will officially implement a plan to expand the scope of sales and service tax collection and increase tax rates from July 1, 2025 to increase fiscal revenue.
Some non-essential and luxury goods such as salmon, avocados, lobsters, king crabs, high-end mobile phones, racing bicycles, etc. will be subject to a sales tax of 5% to 10%; beauty services and other industries will be subject to an 8% service tax.
Previously, the plan was scheduled to be implemented on May 1, but was postponed due to adjustments in US tariff policies. The government emphasized that various necessities of life such as food, cooking oil, medicine, educational supplies, agricultural machinery, etc. will continue to be exempt from sales tax.
The scope of service tax collection has also been further expanded to cover multiple fields such as leasing, construction, finance, private medical care, education and beauty, and the tax rate has been raised from 6% to 8%.
Beauty service providers with annual revenue exceeding RM500,000 must pay taxes in accordance with the law, while private medical institutions charge non-citizens a 6% service tax, while local citizens remain tax-free.
Some non-essential and luxury goods such as salmon, avocados, lobsters, king crabs, high-end mobile phones, racing bicycles, etc. will be subject to a sales tax of 5% to 10%; beauty services and other industries will be subject to an 8% service tax.
Previously, the plan was scheduled to be implemented on May 1, but was postponed due to adjustments in US tariff policies. The government emphasized that various necessities of life such as food, cooking oil, medicine, educational supplies, agricultural machinery, etc. will continue to be exempt from sales tax.
The scope of service tax collection has also been further expanded to cover multiple fields such as leasing, construction, finance, private medical care, education and beauty, and the tax rate has been raised from 6% to 8%.
Beauty service providers with annual revenue exceeding RM500,000 must pay taxes in accordance with the law, while private medical institutions charge non-citizens a 6% service tax, while local citizens remain tax-free.
