Govt reviewing SST for elderly care services
KUALA LUMPUR: The Finance and Women, Family and Community Development Ministries are reviewing proposals to improve the Sales and Service Tax (SST) for elderly care services regulated by the Welfare Department.
The Malaysian Finance and Women, Family, and Community Development Ministries are currently examining proposals to enhance the Sales and Service Tax (SST) for elderly care services overseen by the Welfare Department. The Finance Ministry aims to review the type and nature of services offered, including basic and premium care, to ensure a more precise tax treatment.
The government acknowledges concerns regarding the impact of service tax on the expenses incurred by elderly individuals receiving care services, particularly as demand for these services rises alongside Malaysia's aging population. In response to a parliamentary query from Datuk Shahelmey Yahya (BN–Putatan) about potential SST exemptions for elderly care centers and homes, the ministry stated that such services are currently subject to SST under the Service Tax Regulations 2018, with a registration threshold of RM500,000 since September 1, 2018.
The ministry added that the proposed enhancements will be announced upon completion, considering stakeholder opinions and relevant implementation aspects.
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