Construction companies receive continued government assistance through Sales and Services Tax exemptions for specific development projects. Deputy Works Minister Ahmad Maslan announced that residential buildings and public facilities benefit from these tax breaks. Houses of worship, recreational parks, and public toilets qualify for the exemption program. Essential materials such as cement, aggregate, and sand maintain zero tax rates. These measures reduce financial burdens on developers while maintaining infrastructure project momentum.
Business-to-business transactions operate under specific conditions within the exemption framework. Main contractors face SST obligations while subcontractors earning below RM1.5 million remain exempt. Companies holding contracts without review provisions receive one-year exemptions with attached terms. This transition period allows the construction industry adequate time for system adjustments and registration processes. The ministry confirmed no discussions exist regarding threshold increases from RM1.5 million to RM3 million for taxable service registration.
Business-to-business transactions operate under specific conditions within the exemption framework. Main contractors face SST obligations while subcontractors earning below RM1.5 million remain exempt. Companies holding contracts without review provisions receive one-year exemptions with attached terms. This transition period allows the construction industry adequate time for system adjustments and registration processes. The ministry confirmed no discussions exist regarding threshold increases from RM1.5 million to RM3 million for taxable service registration.
