“We Don’t Earn Dubai-Level Money” Many Unhappy With Revised SST That’s Starting On 1 July

The expanded sales and services tax (SST) will tax some non-essential goods at 5% and 10%.

For illustration purposes

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The expanded sales and service tax (SST) announced in Budget 2025 will come into effect from 1 July 2025 onwards.

The tax revision aims to strengthen the country’s fiscal position by increasing revenue and broadening the tax base. The plan is to channel the extra funds collected towards improving public services and expanding the social safety net.

The good news is essential daily goods are not taxed (taxed at 0%). These include chicken, beef, mutton, fish, prawns, squid, local vegetables and fruits, rice, barley, oats, wheat, flour, canned sardines, sugar, salt, white bread, pasta, vermicelli, noodles, instant noodles, milk, cooking oil, medicine, medical devices, books, journals, newspapers and pet food.

Key construction materials (cements, stone, sand) and agricultural inputs like fertilisers, pesticides, and agricultural and livestock machinery are exempt from being taxed as well.

However, some non-essential goods will be taxed at 5% and these include king crab, salmon, cod, truffle mushrooms, imported fruits (your apples, oranges, grapes, berries etc), essential oils, silk fabrics, and industrial machinery.

Meanwhile, premium items like racing bicycles and antique hand-painted artworks will be taxed at 10%. The rest of the items affected by the revised SST can be found here.

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Many people are unsurprisingly unhappy with this move as this means the cost of living gets higher (while most wages remain stagnant so buying power is imbalanced). Some are worried that unscrupulous businesses will pass on the cost to consumers.

A user pointed out that local fruits like ciku and papaya aren’t any cheaper than imported fruits while another person believes the latter shouldn’t be taxed since they’re essential food for maintaining good health.

The tax revision also made a user ask whether the government thought everyone is earning Dubai-level income to be taxed for everything.

There will be alot of abuse from the beauty, rental /leasing and construction sectors; they are going to blindly charge us customers the tax whether or not they hit the threshold.
— Dhilly🔺 (@leonwales) June 9, 2025

Buah-buahan tu tak perlu lah… makan untuk kesihatan 🫠

Essential oils utk kesihatan pun termasuk jugak ke???

Haiiiihhhhhhhhhhhh
— 🌸 (@dilokakirana) June 10, 2025

most of common fruits like apples, lychee and oranges are imported. and now they will become more expensive.
— arifakib (@arifakib1) June 9, 2025

Buah-buahan tempatan also expensive like hell. Cuba pi beli ciku? Your pocket will get burnt. Even papaya sebiji M size easily RM8-9 if you live in the city.
— JuneST (@JuneSTBeris) June 11, 2025

Rasanya imported fruits tu tak perlu la kena cukai, monthly groceries tu adoi. Berries, grape, apple tu dah la mostly import dari aussie dengan china etc. Kat market susah betul nak jumpa local punya. Ada pun lagi premium and mahal dari yang import dari china 🥲.
— Mr. Irk (@Onlyfizk) June 10, 2025