KUALA LUMPUR: The list of non-essential and imported, or premium, goods that will be subject to sales tax is likely to be announced early next year, before its implementation in May, said Treasury secretary-general Datuk Johan Mahmood Merican.
He said the government is committed in identifying the items that will be listed by engaging with various groups.
"We have talked to a few tax partners early this week where they will check some proposal that we have shared with them."
"We hope to come up with the expansion of the scope by early next year by aiming towards ensuring that this is implemented smoothly in May," he said during a panel session at the 50th Deloitte TaxMax seminar.
In the 2025 Budget proposal, the government announced that the sales tax regime, which previously focused on essential goods, will be expanded to include non-essential goods, such as premium foods like avocado and salmon.
There are two rates under sales tax.
A five per cent rate for construction materials, petroleum oils, timepieces and certain food products and a 10 per cent rate on luxury items, low-value goods imported via land, sea or air valued below RM500.
Prime Minister Datuk Seri Anwar Ibrahim who tabled the budget last month had said the government will engage stakeholders before finalising the expanded scope of the tax.
On the the government's plan to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF), Johan said the proposal provides a fair environment for employment in this country.
"We have a lot of foreign workers which many of them overstay. The EPF contributions are the added incentive that they can take back after their work permit expires," he said.
He noted that non-citizen workers currently are not required to contribute to the EPF, which creates a one-sided policy against non-citizen workers, thus the proposal creates fair workplace environment.