Tourism sector awaits clarity on Malaysia’s sales and services tax rollout

The travel trade is eager awaiting details on Malaysia’s Sales and Services Tax (SST) rate, which is set to be reintroduced on September 1 after the bill is passed in the current parliament session.

Malaysian finance minister Lim Guan Eng had announced that the provision of services has been set at six per cent, while the sales of goods will incur a 10 per cent tax.

These are the same rates imposed under the old SST structure before it was replaced by the Goods and Services Tax (GST) on April 1, 2015.

While Malaysian consumers are currently enjoying the tax holiday after the GST has been reduced to zero since June 1 this year, travel industry leaders are waiting and seeing how the new tax laws will affect the sector.

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