MRCA Urges Government to Postpone 8% SST on Rental Services Set for July 1

The Malaysian Retail Chain Association (MRCA) has urged the government to delay the 8% sales and service tax (SST) on rental and leasing services, set to start on July 1, 2025. The MRCA acknowledges the government’s aim to expand the tax base but warns that the new tax will burden retailers already facing rising costs from minimum wage hikes, employee contract stamping, and stricter regulations. This could lead to higher consumer prices due to increased operational expenses across the supply chain. With weaker consumer sentiment amid planned subsidy cuts, retailers may struggle to absorb these costs. The MRCA is engaging with the Finance Ministry to ensure balanced and sustainable policy implementation for the retail sector.