Kuala lumpur: The government continues to support the construction sector by granting Sales and Services Tax (SST) exemptions for selected projects, particularly those involving residential buildings and public facilities, including houses of worship, recreational parks, and public toilets, said Deputy Works Minister Datuk Seri Ahmad Maslan. He stated that essential building materials such as cement, aggregate (gravel), and sand remain zero-rated under the sales tax to help reduce the burden on developers and ensure the continuity of infrastructure projects.
According to BERNAMA News Agency, Ahmad highlighted that selected business-to-business (B2B) activities are subject to certain conditions. Main contractors are subject to SST, but subcontractors earning below the threshold of RM1.5 million are exempt. He provided this information during an oral question and answer session at the Dewan Rakyat in response to a query from Yusuf Abd Wahab (GPS-Tanjong Manis) about the categories of construction projects exempted from SST and the ministry’s steps to ensure that existing projects are not affected by its implementation.
In line with the government’s commitment to implement SST fairly and effectively, Ahmad mentioned that companies and contractors with contracts that do not allow for review will receive a one-year exemption, subject to terms and conditions. This incentive is part of the government’s measures to ensure the construction industry has sufficient time to adjust the system, streamline the registration process, and obtain accurate clarification on the implementation of SST.
Meanwhile, Ahmad addressed the issue of increasing the threshold value for registration of taxable services. He stated that there has been no discussion to raise the threshold from RM1.5 million to RM3 million. This was in response to a supplementary question from Abdul Latiff Abdul Rahman (PN-Kuala Krai) regarding the industry’s proposal to increase the threshold value for the registration of SST taxable services, particularly for construction and rental and leasing categories.