MoF Exempts Soybeans, Animal Feed From Sales Tax To Ensure Price Stability

PUTRAJAYA, Sept 12 (Bernama) – Animal feed, including raw soybeans which are a key component in its production, is now exempt from Sales Tax or subject to a zero rate as part of efforts to stabilise the prices of essential food items such as chicken, eggs and meat.

In a statement today, the Ministry of Finance (MOF) said the decision was also based on industry feedback that soybeans are a key input in animal feed production.

According to the MOF’s appendix, zero-rated animal feed refers to types suitable for poultry, pigs, prawns, and other livestock not included in the list.

“The MoF also noted media reports on the implementation of the Sales and Service Tax (SST) on raw materials used in animal feed production.

“With regards to other raw materials used in animal feed formulations, the issue is currently being studied in detail, including via engagement sessions and technical reviews with relevant stakeholders,” it said.

The ministry added that the MADANI government remains committed to ensuring a fairer and sustainable tax policy that supports the competitiveness of the country's livestock sector.

-- BERNAMA