One more year for e-invoice transition, lower SST for certain sectors: Anwar

 

Companies have been given an extra year to transition to e-invoicing, during which time they will not be penalised, said Prime Minister Anwar Ibrahim.

The extended transition period this year will be applied to companies that earn between RM1 million and RM5 million in annual revenue, said Anwar, who is also the finance minister.

The extension was among a raft of economic measures that Anwar announced during a special New Year’s speech at the Prime Minister’s Department in Putrajaya today.

Other measures included reductions in sales and service tax (SST) rates for certain sectors and industries, an increase in small loans for entrepreneurs, and income tax exemptions.

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“There will be no penalty for one more year because many have said that the cost of compliance is very high,” Anwar said of the decision to extend the transition period for e-voicing.

Also, the revenue threshold at which companies have to start implementing e-invoicing has been raised from RM500,000 to RM1 million, he added.

Companies selling construction materials will also have to adopt e-invoicing, he said.   

Among the changes to the SST regime, the prime minister said that the rate imposed on rentals has been reduced from eight percent to six percent.

“This is to reduce operating costs for businesses.”

More exemptions, faster approvals

These measures were on the back of announcements on key institutional reforms that are slated to be tabled in Parliament this year, which include term limits for the prime minister and creating a separate public prosecutor’s office.

Anwar also unveiled several aid packages for schools and food banks for students.

According to a handout from the Prime Minister’s Department, other measures that Anwar announced include:

• SST will not be levied on manufacturers of animal feed, fertiliser, and insecticide to reduce the cost of agricultural products.

• SST for the construction of houses of worship has also been exempted.

• Bank Negara loans have been increased to RM2.5 billion, while guarantee schemes have been increased to RM10 billion.

• Funds and guarantees for micro, small, and medium enterprises have been increased to RM50 billion in 2026 from RM40 billion last year, while funds specifically for Tekun Nasional programme have been increased to RM500 million this year.

• Income tax exemptions for welfare and charity organizations will be extended automatically for another 10 years.  

• Approvals for RM2.4 billion worth of small-scale infrastructure projects such as repairing rundown clinics, schools, roads, and installing street lights will be expedited.  - Mkini