What is sales tax

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What is sales tax?

Sales tax is levied on goods (but not services or other intangibles) manufactured in Malaysia (except Free Zones and Licensed Manufacturing Warehouses). It is payable on the sale value of the goods at the time of sale, use or disposal by other means. The 2000 Budget proposed that sales tax can also be levied on the quantity of goods sold, used or disposed of, or imported.

The tax is also levied on goods imported into Malaysia (except from Labuan or Langkawi) for home consumption on the value of the goods for customs duty plus the amount of customs duty, if any payable.

It is single stage tax payable by the manufacturer or by the importer as the case may be.

On goods not exempted, the rate of tax is:-

Certain foodstuff, timber and building materials.	5%
Beer, wine, liquor and cigarettes.	15%
Other taxable goods.	10%

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