Just after one week of taking over the government, Malaysia’s new administration has declared that the much dreaded goods and services tax (GST) will be reduced to 0% from 1st June 2018 until further notice, a move that is likely to spur spending in the nation.
Prime Minister Mahathir Mohamad, who won last week’s general election, had vowed during the campaign to get rid of the 6% GST to address the rising cost of living that former PM Najib Razak had introduced in 2015.
According to the official release posted on the official Ministry of Finance Facebook page, this will cover both local and imported goods and services, though there’s still no official announcement of reintroducing the previous Sales and Services Tax (SST) in Malaysia.
So what does this mean for the rest us? Items that are currently GST exempted will remain unaffected, but you’d be happy to find that you can start purchasing these things without having to worry about that extra 6%:
1. Sanitary Pads
3. Multivitamins & Supplements
4. Smartphones, Tablets & Laptops
5. Beauty Products & Perfumes
6. Artisanal Grocery Items
7. Books, Novels & Encyclopedias
8. Online Shopping
In fact, online retailer Zalora is giving the nation 6% off purchases on the platform as of today until the end of May, effectively zeroing the GST impact ahead of implementation! For 6% off on ZALORA, use ‘NOMORE6’ at checkout.
9. Massage, massage!
10. Fancy Dinner