Kuala lumpur: Animal feed, including raw soybeans which are a key component in its production, is now exempt from Sales Tax or subject to a zero rate as part of efforts to stabilise the prices of essential food items such as chicken, eggs, and meat. In a statement today, the Ministry of Finance (MOF) said the decision was also based on industry feedback that soybeans are a key input in animal feed production.

According to BERNAMA News Agency, the MOF’s appendix specifies that zero-rated animal feed refers to types suitable for poultry, pigs, prawns, and other livestock not included in the list. The MoF also noted media reports on the implementation of the Sales and Service Tax (SST) on raw materials used in animal feed production.

The ministry highlighted that the issue regarding other raw materials used in animal feed formulations is currently being studied in detail. This includes engagement sessions and technical reviews with relevant stakeholders. The MADANI government remains committed to ensuring a fairer and sustainable tax policy that supports the competitiveness of the country’s livestock sector.