Transport minister to discuss SST applicability to domestic flights with Finance Ministry

SEPANG, March 4 — Transport Minister Anthony Loke today said that the imposition of the Sales and Service Tax (SST) on air tickets will be a topic of discussion with the Ministry of Finance (MoF).

He said the matter will be brought up during the Cabinet meeting that is scheduled for this week to determine whether the 6 per cent SST for domestic flights can be maintained.

“Yes, SST is applicable to air tickets. I will discuss with MoF to see whether we can maintain the SST of 6 per cent for domestic flights.

“This is something I need to discuss with MoF as it is under their purview,” he said during a press conference after officiating the launch of AirAsia’s Hari Raya Fixed Fare Flight initiative here today.

Last month, the MoF announced the details of its tax reforms, which included an increase in the SST from 6 per cent to 8 per cent effective March 1 this year and expected to generate an estimated additional RM3 billion in revenue.

However, the increase will not affect services related to food and beverage, telecommunications, and vehicle parking services.