KUALA LUMPUR, July 29 — The government continues to support the construction sector by granting Sales and Service Tax (SST) exemptions for selected projects, particularly those involving residential buildings and public facilities, including houses of worship, recreational parks and public toilets, said Deputy Works Minister Datuk Seri Ahmad Maslan.
He said essential building materials such as cement, aggregate (gravel) and sand remain zero-rated under the sales tax to help reduce the burden on developers and ensure the continuity of infrastructure projects.
“Selected business-to-business activities are subject to certain conditions. For instance, main contractors are subject to SST, but not to subcontractors earning below the threshold of RM1.5 million,” he said during an oral question-and-answer session at the Dewan Rakyat on Monday.
Ahmad was responding to a question from Yusuf Abd Wahab (GPS-Tanjong Manis) regarding the categories of construction projects exempted from SST, as well as the ministry’s steps to ensure that existing projects are not affected by its implementation.
In line with the government’s commitment to implement SST fairly and effectively, he said, companies and contractors that carry out contracts that do not allow for review will be granted a one-year exemption, subject to terms and conditions.
“This incentive is part of the government’s measures to ensure the construction industry has sufficient time to adjust the system, streamline the registration process and obtain accurate clarification on the implementation of SST,” he said.
