Proposed list of exempt supplies

No. 1. Category Financial Services Descriptions In the case of Bank interest income received from the provision of loans, advances, overdraft and other credit financing return on investment transactions such as gross dividend and realized gain from disposal of a financial asset (sales of equities, debt security, derivative instrument, investment linked unit and unit trust) In the case of Insurance company life and family premiums, life reinsurance and family retakaful premiums In the case of Stock Broking Firms share buy back programme is not a supply but the subsequent resale of such shares is treated as making exempt supplies

2.

Domestic passenger transportation

mass public transportation by rail (KTM, LRT, ERL, Monorail) ship, boats, ferries (including hovercraft) express buses, stage buses, workers buses, school buses and feeder buses taxi and hired car ambulance services toll highway

3.

Healthcare services

healthcare and related services provided by private hospital and clinics

No. 4.

Category Education services

Descriptions canteen provider in primary and secondary schools training and educational activities provided by private institutions

5.

Supply of land and residential houses

sales and lease/rental of residential houses including low and medium cost houses sales and lease/rental of land for agricultural purposes Land for general use such as for Govt department and burial ground

6.

Supply of gold

Supply of gold for the purpose of investment Supply of refined pure gold from a refiner to the first buyer for investment purposes

Note: - Basis for exempting the supplies To lower the tax burden on the rakyat. To meet social obligations and economic objective of the. Government in respect of public amenities. Complexity and administratively difficult in taxing certain services specifically on financial services due to difficulty in identifying the value added portion of the services.