No change to construction sector SST revenue threshold of RM1.5m, says Ahmad Maslan

• Deputy Minister of Works Datuk Seri Ahmad Maslan told the Dewan Rakyat that the RM1.5 million threshold is appropriate, and small-scale contractors with project values below this threshold will not be impacted by the tax.

KUALA LUMPUR (July 28): The government will maintain the annual revenue threshold for the expanded sales and services tax (SST) on construction services at RM1.5 million, despite industry calls to raise it to RM3 million.

Deputy Minister of Works Datuk Seri Ahmad Maslan told the Dewan Rakyat that the RM1.5 million threshold is appropriate, and small-scale contractors with project values below this threshold will not be impacted by the tax.

The government had communicated the implementation timeline in advance, to ensure that industry players had ample time to prepare, he added.

“There has been no discussion to raise the threshold, and I do not foresee it happening,” Ahmad Maslan said. “At this point, the RM1.5 million threshold is sufficient.”

Since July 1, a 6% SST has been imposed on construction service providers whose taxable revenue exceeds RM1.5 million within any 12-month period.

Exemptions apply to certain categories, such as construction work for residential buildings and public amenities within residential developments.

Ahmad was responding to Abdul Latiff Abdul Rahman (PN–Kuala Krai), who had urged the government to consider raising the threshold, citing rising costs such as labour and materials.

The deputy minister also responded to another question from Yusuf Abdul Wahab (GPS–Tanjong Manis), who sought clarification on exempted construction categories, the treatment of ongoing projects, and whether a grace period was provided for compliance.

“The implementation of SST will not undermine the viability of the construction sector,” Ahmad Maslan said.

He reiterated that the government is committed to supporting the sector through targeted exemptions and proactive adjustments.

“Various categories have been exempted, including religious facilities, public toilets, and recreational parks,” he said.

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