The increase of the sales and service tax (SST) being collected from 6% to 8% kicks in today, including for e-commerce and streaming services.
During the tabling of Budget 2024 last October, prime minister and finance minister Anwar Ibrahim announced that the sales and service tax rate will be increased from 6% to 8%. This was announce to be effective starting 1 March, which is today, so expect most things to see a small jump in price moving forward.
In case you missed it, this will not apply to a small number of services. These are ones related to food and beverages, as well as telecommunication, which will remain at the previous 6% SST rate. There's the possibility of electricity and water bills being part of the exception, but the government has not come to a final decision on this yet.
On the flip side, what is definitely being affected by the 2% increase in SST rate are e-commerce platforms and streaming services. On the former, platforms like Lazada and Shopee have already indicated their implementation of this change, mostly via the way it would affect sellers on their respective platforms.
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