Kuala lumpur: The Small and Medium Enterprises Association Malaysia (SAMENTA) has welcomed the Ministry of Finance’s (MoF) revision to the expanded Sales and Service Tax (SST), describing it as a meaningful relief for the small and medium enterprises (SMEs).

According to BERNAMA News Agency, SAMENTA President Datuk William Ng stated that the revision includes a higher annual sales threshold for service tax on rental and financial services, effectively exempting approximately 75% of SMEs from the additional eight percent tax under the expanded SST.

Ng highlighted that when the expansion of the SST was first announced, SAMENTA voiced concerns about its potential impact on SMEs. The association urged the government to raise the SST threshold to protect smaller enterprises while maintaining a broader and fairer tax base.

The MoF announced that, after considering public sentiment, it has decided not to proceed with the proposed expansion of the service tax to beauty services, including manicures and pedicures, facial services, and services provided by barbers and hairdressers. The MoF emphasized that all revisions were made after considering feedback from the public and industry.

Ng expressed gratitude to Prime Minister Datuk Seri Anwar Ibrahim for addressing their concerns and directing the ministry to revise the threshold upwards. He stated that SAMENTA will continue advocating for a balanced and SME-friendly approach in future tax reforms but considers this matter concluded and will not seek further concessions on the SST expansion.

He also encouraged affected SMEs to implement the expanded SST and seek assistance from the Royal Malaysian Customs Department as needed.