SST threshold for eateries increased to RM1.5 million

PUTRAJAYA: Local eateries will be subjected to the Sales and Services Tax (SST) only if their annual turnover is more than RM1.5 million.

Finance Minister Lim Guan Eng said the government had agreed to raise the threshold from RM500,000 as was previously determined.

This, he said, followed feedback from restaurant operators, especially those in the Klang Valley, on the high operational costs they encountered.

However, Lim said, this would be the only time the threshold would be raised.

“After receiving requests from several quarters, including nasi kandar restaurant owners, we have raised the threshold value for eateries.

“We had actually wanted to raise it to RM1 million. They (the owners) rejected this and asked for it to be raised to RM3 million.

“But the government has made the decision that the threshold value be set at RM1.5 million,” he said during a media briefing on SST.

Present were Customs Department director-general Datuk Seri T. Subromaniam and Domestic Trade and Consumer Affairs Ministry Enforcement Division director Datuk Mohd Roslan Mahayudin.

Lim said the reason the threshold was raised was to ensure that there would be no significant increases in prices at restaurants.

“I hope the people will be the eyes and ears of the government if there is any price hike at restaurants. If there are any problems, please report to the Domestic Trade and Consumer Affairs Ministry so that action can be taken.”