Kuala Lumpur: The Ministry of Finance (MoF) has announced that new registration applications in line with the expansion of the service tax scope and the revision of the sales tax rate, effective from July 1, 2025, can be submitted starting from August 1, 2025.
According to BERNAMA News Agency, for existing registered persons, applications to add new services under the expanded service tax scope and new tariff codes under the revised sales tax rate can be submitted beginning June 24, 2025. This announcement was made by the ministry in a post on X.
The government had earlier, on June 9, announced a targeted review of the sales tax rate alongside an expansion of the service tax scope, both set to take effect from July 1. While the sales tax rate will remain unchanged for essential goods, a five or 10 percent rate will be imposed on selected items.
In addition, the scope of the service tax will be broadened to encompass six new services, including leasing or rental, construction, finance, private healthcare, education, and beauty services. Treasury secretary-general Datuk Johan Mahmood Merican reportedly stated that revenue from the Sales and Service Tax (SST) collection is anticipated to grow by RM5 billion in 2025 and by RM10 billion in 2026, following the implementation of the revised and expanded SST scope starting next month.