GST (Goods and Services Tax)

The single largest and divisive issue in the Malaysia Budget 2014 announcement was the introduction of the GST and abolishment of the 10% Sales Tax and 6% Service Tax (SST) starting 1 April 2015. The GST was such a large issue that we have used a whole article to cover it in our GST in Malaysia guide.

In short, a 6% GST rate was introduced starting 1 April 2015, affecting businesses and the public alike. As a whole, whether prices will increase or not directly as a result of the GST being introduced will depend on the following:

1. Items affected by 10% Sales Tax or 6% Service Tax -> May result in reduction of prices, or at least no change

2. Items which are not affected by 10% Sales Tax or 6% Service Tax -> May result in price increases

3. Items which were exempt from 10% Sales Tax or 6% Service Tax but not exempt from GST -> May result in price increases

The list of exemptions for GST are fairly large, but they generally cover essential items such as flour, cooking oil, sugar, salt, public transport tickets etc.

Source: http://savemoney.my/malaysia-budget-2014-review-gst-cost-of-living-br1m-etc/#gst