Which tax rates will apply to non-essential and imported goods?

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Accepted Answer

Sales tax rates of 5.0 and 10.0 per cent will apply to non-essential and imported goods.

The finalised expansion of the sales and service tax (SST) scope and a review of SST rates are set to be gazetted in the first quarter of 2025. This will occur after ongoing engagement processes with ministries and industry stakeholders are concluded. The government is actively consulting to finalise the precise scope and tax rates before the changes are enforced.
Application of 5.0 and 10.0 Per Cent Rates

The government proposes to maintain the zero per cent sales tax rate for essential goods. However, existing rates of 5.0 and 10.0 per cent are planned for extension to a wider range of items. These include non-essential goods, processed goods, high-value items, and imported goods.
Service Tax Rate Considerations

In addition to sales tax, considerations are being made for service tax rates. Proposed rates of 6.0 and 8.0 per cent are being evaluated for extension to specific service sectors. Discussions have also encompassed the complexities of emerging issues and their potential effects on these service sectors.
Ensuring Minimal Impact on Vulnerable Groups

The Ministry of Finance has stated that the government aims to ensure the revised tax rates do not disproportionately affect vulnerable groups. Measures will be put in place to control the impact of inflation resulting from these tax adjustments. Stakeholder engagement is a key part of this process to gauge and address potential economic consequences.

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Which tax rates will apply to non-essential and imported goods?

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