Shellfish, salted fish are exempted from SST

PUTRAJAYA: Seafood categorised as crustaceans and molluscs are exempted from the 10 per cent Sales and Services Tax (SST) effective immediately, said Finance Minister Lim Guan Eng.

He said raw ingredients that came under the two categories included shrimps, lobsters, squids, oysters, scallops, clams, cockles, ark shells, mussels and abalones.

The exemption was made following complaints from the public that questioned why a 10 per cent SST was imposed on foods not considered as luxury items such as shrimps, crabs and prawns.

“These items were taxed at 10 per cent as they were lumped together with premium seafood such as abalones,” he told a media conference here yesterday.

Lim said he had directed the Customs Department to exempt immediately these seafood items.

“I thought the list only included premium items but apparently, there were also non-luxury ingredients that are used in nasi kandar and char kuey teow,” he said, quipping that the two local dishes were among his favourites.

Lim said although the exemption also covered luxury items such as abalones, a review of the list would be carried out from time to time until year-end.

"We will see whether we will remove (abalones) and impose SST on abalones and other items. For the time being, let's do a one-shot (exemption of all products under the categories)," he explained.

Customs Deputy Director-General Datuk Paddy Abdul Halim, who was present at the media conference, said a gazette had been issued in relation to the Sales Tax (Rates of Tax) Order 2018 and Sales Tax (Goods Exempted From Tax) Order 2018.

He said “Guide on Proposed Sales Tax Rates for Various Goods” uploaded to the mysst.customs.gov. my portal had a list of 3,564 goods as a point of reference for consumers and industries.

"However, it is not an exhaustive list on goods that are taxed and tax-exempted. The guide comprises only common consumer goods,” he noted.

Paddy said the guide would be updated from time to time and would be replaced with “Guide on Sales Tax Rates for Various Goods” according to the laws and orders gazetted.

He also conveyed the Customs Department's apology on the issue of salted fish and admitted the department had overlooked the exemption of the products from the 10 per cent SST as directed by Lim.

“The department apologises for the mistake and will issue an exemption order immediately as instructed. Traders are requested not to collect SST for salted fish,” Paddy said.

He added that the public could obtain further information by contacting Customs Call Centre (CCC) at 1-300-888-500 and via email at ccc@customs.gov.my or at the nearest Customs branch.