SHAH ALAM, Aug 20 — The number of exempted or zero-rated items under the Sales and Service Tax (SST) is much higher compared to the former Goods and Services Tax (GST), according to the Finance Ministry (MOF).
In a written Parliamentary reply to Segamat MP Yuneswaran Ramaraj yesterday, it said 1,826 goods are exempted under the SST framework, compared to just 607 items under GST, which was abolished in 2018.
The list covers essential goods like fresh food, rice, sugar, bread, milk, cooking oil, medicines, medical devices, and reading materials.
Exemptions also apply to livestock feed, basic construction materials, fertilisers, pesticides, and agricultural and livestock machinery.
On services, the MOF said the SST covers about 70 per cent of the economy, compared to 76 per cent under GST.
Exemptions include passenger transport, rural air services in Sabah and Sarawak, prepaid telecommunications, food delivery, residential rental, cleaning, water supply, and household electricity below 600 kilowatt-hour.
GST was introduced by the then-Barisan Nasional administration in April 2015. It was subsequently abolished in 2018 when the Pakatan Harapan government came into power.
