The tax holiday season in the past few months has been refreshing, relieving and very kind to our wallets.
Now, reducing six per cent off daily expenses may sound like peanuts to you, but as a wise man once said...
But unfortunately, we are nearing the end of this season as Malaysia prepares for the implemented of the Sales and Service Tax (SST)
beginning 1 September.
Until today, there has not been any confirmation of how the SST will be charged despite the passing of the Service Tax Bill and Sales Tax Bill at the Dewan Rakyat in the last two days.
But there is some good news because more than 5,000 items and 7,000 food outlets will be exempted
reported that all restaurants and eateries earning less than RM1mil annually
will be exempted from the tax.
So, this means that we still get to enjoy our roti canai
, nasi lemak
, food trucks and more without forking out extra money for tax.
Before the tax holiday started, about 13,000 restaurants and food outlets had to pay the Goods and Service Tax (GST).
This also applies to food and accommodation provided by private hospitals. They will now be exempted from the SST as well.
As a whole, only 38 per cent of goods will reportedly by taxed under the SST, compared to the 60 per cent by the GST previously.
"According to the Customs Department, some 5,443 goods and services are exempted from the SST compared to only 545 items under GST," Finance Minister Lim Guan Eng said.
For example, milk bottles, child care services, bicycles, health insurance, wheelchairs and walking sticks will also be exempted from the tax.
In terms of Service Tax, only 43.5 per cent of services will reportedly be imposed a six per cent SST, which is lower than the 64.8 per cent GST.
Some services that will be charged a six per cent service tax under the SST for the first time include gambling activities, such as forecast numbers, lotteries, casinos, clubs, and turf clubs.
Hotel accommodation, including bed and breakfast, shared accommodations, serviced apartments and homestay will be imposed the six per cent tax as well.
Besides that, all forms of night clubs, private clubs, golf clubs and golfing ranges will also be taxed under the SST.
And finally, telecommunication services with add-ons will also be imposed a tax, including applications, games, internet services and paid TV services.
Having said that, the Sales Tax Bill and Service Tax Bill are still pending approval from Senators at Dewan Negara
Until the SST is finalised, we should have a more comprehensive list of taxable and non-taxable goods and services by then.
What do you think of the tax exemption so far?