Starting 1 July 2025, the Malaysian government introduced three important changes to the Sales and Service Tax (SST). These updates are meant to reduce the burden on consumers and help small businesses. If you shop, go to salons, or run a small service business these changes matter to you.
Here’s a quick breakdown of what’s changing and how it affects you.
1. No SST on Popular Imported Fruits
From July onwards, imported fruits like apples, oranges, mandarin oranges, and dates are now exempted from SST. These items are added to the list of basic food essentials like rice, chicken, and vegetables that are already tax-free.
How This Benefits You:
- No unexpected price increases at supermarkets or night markets.
- Imported fruits will remain affordable, even though the SST rate has gone up.
- Families that buy fruits regularly will enjoy more savings.
2. Haircuts and Beauty Services Remain SST-Free
There were concerns that grooming services would be taxed under the new SST rate. However, the government has confirmed that personal care services remain SST-exempt, including:
- Haircuts and barbering
- Manicures and pedicures
- Facials and other basic beauty treatments
How This Benefits You:
- You won’t be charged the 8% SST for regular grooming services.
- Prices at salons and barbershops should stay the same.
- Personal grooming remains affordable for all.
3. Small Rental and Finance Service Providers Are Safe from SST
Previously, businesses offering services like equipment rental, leasing, or financial services had to register for SST if they earned RM500,000 or more annually.
Under the new rule, the threshold is raised to RM1 million.
How This Benefits You:
- Smaller service providers don’t need to charge SST, so their prices can stay competitive.
- This move supports local businesses and makes their services more accessible.
- Consumers benefit from fairer rates and fewer hidden charges.
Why These SST Changes Matter
These updates are part of the government’s plan to balance tax collection without hurting daily consumers or small businesses. While the SST rate increased from 6% to 8% earlier this year, these exemptions help reduce the impact.
Key Benefits to You:
- No extra tax on selected fruits
- Salon services stay affordable
- Small businesses are protected from extra costs
Conclusion: A Win for Everyday Malaysians
The new SST changes in July 2025 may seem small, but they bring real relief to everyday Malaysians. From cheaper fruits to no surprise taxes at the salon, these changes are designed to protect your spending and support small local businesses.
