Customs Dept has clarified SST rate for alcoholic, non-alcoholic drinks, says SUPP man

KUCHING (Aug 3): The Customs Department has clarified non-alcoholic beverages are imposed with the six per cent Sales and Service Tax (SST), said Sarawak United People’s Party (SUPP) Public Complaints Bureau chief Milton Foo.

He said the Food and Beverage Guidelines handbook, which was issued on April 16 this year, had been replaced with the one dated April 19, which states non-alcoholic beverages are determined to be levied six per cent tax instead of eight per cent.

“After further clarification and better understanding from the Royal Malaysians Customs Department, it was learned the Food and Beverage Handbook dated April 16, 2024 that I presented at the press conference yesterday is indeed obsolete and has been replaced with one dated April 19, 2024.

“This provides that non-alcoholic beverages as specified in Item 6 (of the schedule) are determined to be levied six per cent SST instead of eight per cent. Only beverages with alcohol will be levied eight per cent SST (Item 5) by the government,” he said in a statement today.

Foo also extended his gratitude to the department for clarifying the ambiguity in the SST guidelines, which had caused unnecessary worry to restaurant and catering operators.

He added this also created more public awareness on their rights as consumers in terms of how the SST rate on food and beverages, including alcoholic drinks, is imposed by the government.

“In the meantime, I hope the government will be more cautious or circumspect in issuing any tax policies, rules or guidelines in the future — particularly on issues pertinent to the vital interest of the people — and avoid changing policies overnight or causing unnecessary confusion among the public and merchants,” he said.