Kuala Lumpur, Malaysia: The finance ministry has clarified that the 5% sales tax under the revised Sales and Service Tax (SST) framework will not be applied to certain imported basic food items and locally grown fruits.
According to a ministry spokesperson, two official gazette orders outline which goods are exempt and which are subject to the 5% rate: the Sales Tax (Goods Exempted From Sales Tax) Order 2025 and the Sales Tax (Rate of Sales Tax) Order 2025.
“Any item not listed in these two orders will be subject to a 10% sales tax,” the spokesperson said.
As per the news report by Feee Malaysia Today, among the exempted items are imported essential foods such as rice, wheat, sugar, salt, and meat, which are classified as basic necessities. Both locally produced and imported cooking palm oil are also exempt from the sales tax.
The spokesperson further explained that raw sugar — defined as cane or beet sugar and chemically pure sucrose in solid form — will be taxed at 5%, while refined sugar will remain at a 0% rate.
Earlier this week, the ministry announced that the 0% sales tax for basic essential goods would continue, while a 5% to 10% sales tax would apply to non-essential items starting July 1.
In addition, the scope of the service tax will be expanded to cover sectors such as rent, leasing, construction, financial services, private healthcare, and education.
However, Finance Minister II Amir Hamzah Azizan emphasized that the expansion will include specific exemptions to prevent double taxation and ensure that the public is not unfairly burdened by taxes on essential services.
