Malaysia Sales and Services Tax On The Watch Industry
The Malaysia Sales and Services Tax (SST) was announced by our Finance Minister, YB Lim Guan Eng on 16th July, 2018. The introduction of the SST, which replaces the Goods and Services Tax (GST) sets its rates at 10% for goods and 6% for services.
Since the release of the Proposed Goods To Be Exempted From Sales Tax on 19th July, whereby watches and clocks did not fall under any exemption (as was previously exempted in the old SST regime), MWTA has held a few meetings to discuss the effects of this in the Malaysia Watch Industry, and how it may also affect tourism shopping in Malaysia. The meetings included press medias and dialogues with the Ministry of Finance (MOF) and Royal Customs Department. Our board of committees drafted and emailed our concerns and relevant points of our finding directly to MOF Tax Division, involving YB Tuan Lim Guan Eng on several occasions.
We have finally received confirmation on 3rd September from MOF that the SST for timepieces and clocks will be set at 5%. Thus, MWTA would like to officially close the topic on SST and invite all our fellow members and watch traders to work together on this change for the recovery of our national debt and the betterment of our national growth.
Here’s to Malaysia for all Malaysians!