Sales Tax Act 2018 · Updated to 1 Jan 2025 · Part VI · Exemption, Refund, Drawback, Remission and Deduction
41A. Application for deduction of sales tax by registered manufacturer
Feedback & supportSubject to subsection (2), the Minister may make regulations prescribing—
Minister
“Minister” means the Minister charged with the responsibility for finance;
any percentage of sales tax to be deducted in respect of taxable goods purchased by any registered manufacturer;
any condition for the deduction; and
the form and manner of such deduction.
The deduction of sales tax under subsection (1) shall be made on taxable goods which are raw materials, components, or packing and packaging materials used solely in the manufacturing of taxable goods.
A registered manufacturer may make an application to the
registered manufacturer
“registered manufacturer” means a manufacturer registered under section 13 or 14;
Director General for a deduction on the amount of sales tax paid in the form and manner as prescribed under subsection (1).
Director General
“Director General” means the Director General of Customs and Excise appointed under subsection 3(1) of the Customs Act 1967;
Where the Director General approves the application for deduction of sales tax under subsection (2A), such deduction shall be in accordance with the percentage and conditions as prescribed by the Minister under subsection (1).
prescribed
“prescribed” means prescribed by the Minister in the regulations made under this Act;
Where any registered manufacturer who has made a deduction under subsection (1) fails to comply with any conditions to which the deduction relates, any sales tax that has been the subject of the deduction shall become due and payable by the registered manufacturer on the date on which any of the conditions failed to be complied with.
58 Laws of Malaysia ACT 806