Updated Sales Tax and Excise Duties Orders 2022
As anticipated, in line with the implementation of the HS 2022 Nomenclature, the Ministry of Finance (“MOF”) has issued the following updated Orders, all with an effective date of 1 June 2022:
Updated Orders | Superseded Orders |
Sales Tax (Rates of Tax) Order 2022 | Sales Tax (Rates of Tax) Order 2018 |
Sales Tax (Goods Exempted from Tax) Order 2022 | Sales Tax (Goods Exempted from Tax) Order 2018 |
Excise Duties (Motor Vehicles) (Payment) Order 2022 | Excise Duties (Motor Vehicles) (Payment) Order 2017 |
Excise Duties (Labuan) Order 2022 | Excise Duties (Labuan) Order 2020 |
Excise Duties (Langkawi) Order 2022 | Excise Duties (Langkawi) Order 2020 |
Excise Duties (Pangkor) Order 2022 | Excise Duties (Pangkor) Order 2019 |
Excise Duties (Tioman) Order 2022 | Excise Duties (Tioman) Order 2004 |
Customs Amendment Orders 2022
Similarly, the MOF also issued the following Amendment Orders, all with an effective date of 1 June 2022:
- Customs (Prohibition of Removal) (Amendment) Order 2022
- Customs Duties (Labuan) (Amendment) Order 2022
- Customs Duties (Langkawi) (Amendment) Order 2022
- Customs Duties (Pangkor) (Amendment) Order 2022
- Customs Duties (Tioman) (Amendment) Order 2022
Customs Duties Exemption Order 2022
The MOF introduced an additional exemption in relation to customs duties as follows:
- Customs Duties (Exemption) 2017 (Amendment) (No. 3) Order 2022, effective 1 June 2022
Item 116 - any person who imported or purchased from a licensed warehouse or licensed manufacturing warehouse under Sections 65 or 65A of the Act, lithium iron of a kind used for laptops including notebooks and subnotebooks or aircraft.
Corrigendum
Excise Duties Order 2022 Corrigendum [P.U. (A) 198] has been gazetted to correct the following rate of duty error in the Excise Duties Order 2022 [P.U. (A) 163] published on 23 May 2022:
Tariff Code | Published on 23/5/2022 | Corrected |
3824.99.99 10 | RM0.40 per litre | RM0.40 per mililitre |
As many Orders have been issued recently, taxpayers need to ensure that the updated and correct Orders are used in determining the indirect tax treatment. We would encourage businesses to refresh their policies and written documentation with the latest legislative references.
Please click on the above header link for a copy of the Orders at the official portal of the Federal Legislation.
FAQ Relating to Customs Duties Order 2022
Separately, the Royal Malaysian Customs Department (“RMCD”) has issued a FAQ relating to Customs Duties Order 2022.
Please click on the above header link for RMCD’s announcement on the FAQ.
Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.
For customized guidance, please do not hesitate to reach out to your trusted KPMG adviser(s),
