Double bonus for food and drinks shop operators

GEORGE TOWN: The government will exempt the Sales and Services Tax (SST) on the rental of stalls and cigarette sales to food and beverage shop operators.

Finance Minister Lim Guan Eng said after receiving feedback from food and beverage traders, the SST exemption would be allowed on the rental of small stalls within shops.

“Food and beverage shop operators are only subject to SST after exceeding the threshold value of RM1.5 million, which includes only food and beverages, and rental rates are not included. So, rent is not required in SST,” he said here yesterday.

Earlier, Lim attended a SST briefing with 300 traders and representatives of industries and companies.

Present were Deputy Youth and Sports Minister Steven Sim Chee Keong, Royal Customs Department director-general Datuk Seri T. Subromaniam and State Welfare, Caring Community and Environment Committee chairman Phee Boon Poh.

Lim also announced that the sale of cigarettes at such shops that did not exceed the RM500,000 threshold annually would also be given SST exemption.

He said the government had agreed that the threshold value of both items be set aside to RM1.5 million annually for food and beverages, and RM500,000 for cigarettes.

“The SST exemption on the sales of cigarettes in food and beverage shops with threshold value of less than RM500,000 will help traders in easing their burden as the goods can be sold at the same price in other shops.”

Lim also said the government was considering giving tax exemption to local operators of the research and development sector based outside the Free Industrial Zone, which provided services to companies there.

“This is to encourage the local R&D sector in facing Industrial Revolution 4.0 and enhance competitiveness among local industry players,” he said.