PUTRAJAYA, Sept 12 — Animal feed and its key component, raw soybeans, are now exempt from Sales and Service Tax (SST) or subject to a zero rate, to stabilise the prices of essential food items such as chicken, eggs and meat.
In a statement today, the Finance Ministry (MOF) said the decision was based on industry feedback that soybeans are a key input in animal feed production.
According to the MOF appendix, zero-rated animal feed refers to types suitable for poultry, pigs, prawns, and other livestock not included in the list.
“The MOF also notes media reports on the implementation of the SST on raw materials used in animal feed production.
“With regard to other raw materials used in animal feed formulations, the issue is being studied in detail, including via engagement sessions and technical reviews with relevant stakeholders,” it said.
The Madani government remains committed to ensuring a fairer and sustainable tax policy that supports the competitiveness of the country’s livestock sector, the MOF statement added.
