Kuala Lumpur: The government’s effort to broaden the tax base by incorporating more sectors into the Sales and Service Tax (SST) regime aligns with global trends and reflects a pragmatic approach to fiscal sustainability, according to the Chartered Tax Institute of Malaysia (CTIM). President Soh Lian Seng noted that the rationale for the revision and expansion of SST includes strengthening the country’s fiscal position to better support the well-being of the people and making SST a more progressive and targeted tax.

According to BERNAMA News Agency, CTIM views this move as a timely and strategic use of indirect taxation to enhance government revenue without resorting to further direct taxes or reintroducing the Goods and Service Tax (GST) at this juncture. Earlier, Finance Minister II Datuk Seri Amir Hamzah Azizan announced that the government will implement a targeted revision of Sales Tax rates and an expansion of the Service Tax’s scope effective from July 1, 2025.

Soh stated that the institute will continue to analyse the gazette orders in detail and provide feedback should any inconsistencies with current legislation or practices arise. He emphasized CTIM’s commitment to assisting the business community in understanding the government’s initiatives.

At the same time, CTIM plans to bring forward suggestions for enhancements where appropriate, in the spirit of collaboration and shared national interest. Soh praised the clarity provided through gazette orders and the targeted approach, encouraging continued engagement and practical support to help businesses adapt.

To ensure a smooth transition, CTIM proposed that the government establish dedicated support channels such as hotlines, email, or live chat, manned by knowledgeable personnel, to provide timely responses and minimise compliance risks. The institute welcomes the issuance of transitional rules and guidance to support the implementation process, anticipating further engagement with the authorities to address practical issues that may emerge.