Refined sugar will remain tax-free under Malaysia’s revised Sales and Service Tax (SST) framework effective July 1, 2025, the Ministry of Finance (MOF) confirmed. However, a 5% sales tax will apply to raw sugar used in production.
No Price Hike Justified as Refined Sugar Exempt from SST, Says MOF
MOF clarified that sugar manufacturers like MSM Malaysia Holdings Bhd can apply for tax exemptions on raw materials, and still benefit from government incentives to stabilise supply and prices. The ministry stressed there should be no reason for price hikes on refined sugar.
The statement was issued in response to MSM’s earlier comments regarding the potential impact of SST on sugar prices.
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