KUALA LUMPUR, June 27 — The Finance Ministry (MOF) announced today that, after carefully considering public sentiment, it will not impose a service tax on beauty services such as manicures, facials, and haircuts.
The MOF said all revisions to the expanded Sales and Service Tax (SST) were made based on feedback from the public and industry.
“Since the announcement on June 9, 2025, on the revision of the SST, the Madani Government has closely followed feedback received from the rakyat and engaged with the industry on the proposed expansion of the SST.”
The MOF also engaged a number of backbenchers yesterday to understand feedback from the grassroots, it said in a statement today.
The MOF reiterated that the Madani Government has not imposed an SST on essential goods to mitigate pressure on living costs for most Malaysians.
These tax-exempt essential goods, whether locally produced or imported, include rice, chicken, beef, vegetables and eggs. Local fish varieties, including selar, tongkol, cencaru, and sardine, whether frozen, chilled or fresh, will continue to be SST-exempt.
To lower the number of small businesses affected by the revision of the SST, Prime Minister Datuk Seri Anwar Ibrahim has decided to increase the registration threshold for the SST from RM500,000 to RM1 million for leasing or rental and financial services.
Additionally, the threshold for businesses to be subject to the SST on rental services has been increased, from RM500,000 to RM1 million in total annual sales.
This means only businesses with sales exceeding RM1 million will be required to pay an SST on rental services, providing relief to more micro, small and medium enterprises, it said.
The MOF has urged all parties to make responsible, informed statements on the SST.
— Bernama
