The government will implement a revision of Sales Tax rates and expand the scope of the Service Tax starting July 1, in a move aimed at strengthening Malaysia’s fiscal position through higher revenue and a broader tax base.

Finance Minister II Amir Hamzah Azizan announced today that a zero percent sales tax on necessities will be maintained, while non-essential goods will see a tax of between five and 10 percent.

He said the measures are designed to...