KUALA LUMPUR: The government will exempt essential food items from the Sales and Service Tax (SST).
Prime Minister Datuk Seri Anwar Ibrahim who tabled the 2025 Budget (Belanjawan 2025) today said the SST will remain for imported food items including salmon and avocadoes.
Meanwhile, Anwar said the SST's scope will be widened to cover commercial services including fee-based services.
Anwar said the government will engage stakeholders before finalising the expanded scope of the tax.
"The widening of this scope, which will be done progressively, will come into effect from May 1, 2025.
"A portion of the tax revenue will be used to boost cash aid initiatives and improve the quality of health and educational services."