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  • Writer's pictureGSK & Associates

How will the increase in the Service Tax (SST) rate from 6% to 8% impact businesses and consumers?

We wish to draw your attention to the recent revision in the Service Tax rate, which has been increased from 6% to 8%, effective from 1 March 2024.

Man worried on SST rate increased from 6% to 8%

This amendment is in accordance with the gazetted order issued on 26 February 2024. For a copy of the gazetted order, click the link below:

However, the Service Tax rate will remain at 6% for certain services. These include:

- Food and beverage services

- Telecommunication services

- Parking facility services

- Logistic services

All other taxable services that are not mentioned in the list above will be subject to the new rate of 8% starting from 1 March 2024. We recommend that our clients review this new tax implementation thoroughly and make the necessary arrangements to ensure compliance.

To get a clearer understanding of your specific situation, it's essential to consult with a tax professional who can provide personalised guidance.


Please note that tax laws can change, and it's essential to verify the latest updates with the authority or consult a tax professional to ensure that you're submitting your tax returns based on the most recent regulations.

For further clarification, please feel free to reach out to us at or contact the manager with whom you typically engage or who oversees your organisation's tax matters.

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