14/09/2026

BIZ & FINANCE MONDAY | SEPT 14, 2026

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How businesses can fully benefit from SST exemptions

BRICS currency off the table, says India

AZURA ABAS at 18th BRICS Summit, New Delhi

How to maximise the exemptions The most important exemption that should be considered by all businesses, where goods pass through many stages of manu facturing through various entities in a group, is the use of the business-to-business (B2B) exemp tion. This can involve third parties where intermediate goods are out sourced for certain manufacturing processes and then brought back to be finished by the business enterprise for ultimate sale to customers. The problem here will be the multiple stages of the imposition of the sales tax and the service tax. This is where you may need to scrutinise your business structures to reorganise to take advantage of the exemptions and exclusions available. The principal exemption you can consider is the B2B exemption for service tax. Manufacturers should look at Schedule C and others should look at Schedule A for sales tax. An example of an exclusion is exported services, which may fall outside the scope of SST. Similarly, goods that are ultimately exported should be assessed for eligibility under Schedule A exemptions. To fully benefit from available exemptions and exclusions, businesses should analyse each stage of a

BUSINESS including companies, are merely supposed to be tax collectors on behalf of the government under the Sales and Service Tax (SST) regime. The ultimate taxpayer will either be the individual or the business entity that consumes the goods or services at the end of the value chain. Service tax is generally visible to the end consumer, as invoices typically disclose the value of the services separately from the service tax charged at the applicable rate of 6% or 8%. In contrast, sales tax is more opaque, as it is generally embedded within the selling price of the goods and is not separately reflected on the invoice issued to the customer. Although businesses are meant to act as tax collectors under the SST regime, in practice they often end up bearing a portion of the tax cost. A common scenario arises where sales tax or service tax is incurred on inputs used to produce exempt goods or provide exempt services for sale to the end customer. In such cases, the SST embedded in the input costs may not be recoverable, unless the business is aware of and able to utilise the relevant exemptions and exclusions available. As a result, managing SST efficiently is not a walk in the park. enterprises,

transaction individually while also considering the supply chain as a whole, from procurement to the final sale. This holistic approach helps ensure that all applicable indirect tax reliefs are identified and optimised. What’s the bottom-line objective Any group of companies or business enterprises should segregate the transactions within the group and transactions outside the group. In theory, SST is meant to be applied on the third-party transactions but even in the third-party transactions, there will be exemptions and exclusions to be considered. The majority of the companies that miss out and end up bearing the extra taxes are those who do not take advantage of the exemptions and exclusions for the intercompany transactions. If indirect taxes are not managed effectively, they can increase the cost of goods and services, reducing both competitiveness and profitability. As indirect taxes have a direct impact on margins and cash flow, businesses should place greater emphasis on managing them strategically to protect their bottom line. This article is contributed by Thannees Tax Consulting Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com).

NEW DELHI: BRICS has no plans to introduce a common currency, with India making clear that the grouping is instead focused on expanding trade in national currencies to cut transaction costs and reduce reliance on the US dollar. Ministry of External Affairs Secretary (Economic Relations) Sudhakar Dalela said discussions on settling bilateral trade in local currencies were gaining momentum, but stressed that a unified BRICS currency was not on the agenda. “Local currency settlement is a practical mechanism to reduce transaction costs in bilateral trade ... there is no proposal in the BRICS for a BRICS currency as of now,“ Dalela told reporters during a briefing, directly addressing speculation over the creation of a shared monetary unit. He said discussions on settling trade in national currencies had been underway within BRICS for more than a decade. Dalela said the mechanism was aimed at strengthening economic integration among member states, streamlining direct interactions with the global business community and addressing the aspirations of the Global South. He said targeted frameworks were being developed bilaterally and within BRICS to address the issue, primarily through the finance ministers and central bank governors’ track. The push for greater use of local currencies is part of BRICS’ broader effort to reduce dependence on the US dollar in international trade, reserves and financial settlements. Rather than seeking an overnight replacement for the dollar, the approach is focused on gradually creating a less dollar-dependent financial system that could help member economies shield themselves from external shocks. On geopolitical developments in West Asia and the Middle East, Dalela pointed to the consensus reflected in Paragraph 28 of the New Delhi Declaration as a key outcome of India’s chairship. He said despite BRICS members having diverse economic systems and development experiences, they had managed to establish a platform for transparent discussions and reach common ground on regional stability. “Dialogue and diplomacy should be the guiding parameter for addressing any conflict... that is the only way to build lasting peace, security, and stability,“ he said, adding that BRICS members shared an agreed approach centred on objective dialogue. Reflecting on India’s role as chair across 22 distinct ministerial tracks, Dalela said strong participation across sectors demonstrated New Delhi’s transparent leadership and organisational credibility. “It speaks of India’s convening power, the trust that BRICS members have on India’s ability to steer discussion in a very transparent and objective manner, and to build bridges and forge consensus,“ he said. He added that through open dialogue and a focus on common ground, India continued to facilitate BRICS as a platform to amplify the aspirations and re quirements of the Global South on the world stage.

Tang (centre, left), together with pop group Alpha, during the exclusive experiential session at the grand opening of Yobe Crafted @ TUAH 1895 BBCC.

M’sian yoghurt brand targets 32 Yobe Crafted outlets by end-2027 KUALA LUMPUR: Homegrown frozen yoghurt brand Yobe Malaysia aims to expand its market, targeting 32 Yobe Crafted outlets nationwide by the end of 2027.

affordable luxury for everyday indulgence. “With the injection of fresh capital, this allows us to seamlessly integrate our Yobe Crafted retail outlets and Yobe Mini vending ecosystem into our Yobe App, this digital integration is the catalyst that accelerates our grand vision: pioneering Southeast Asia’s very first App-to-Cup frozen yoghurt and dessert brand.” In August, Yobe Malaysia appointed local M pop group Alpha as its first brand ambassador and introduced fan experiences including collectible photocards, blind boxes and limited edition merchandise. The collaboration supports Yobe Malaysia’s ambition to build a culturally relevant Malaysian brand under the message “Swirled in Malaysia, for the World”. – Bernama

Since its official launch in June, the company has rolled out five Yobe Crafted outlets and 17 Yobe Mini App-to-Cup Vending units, with plans to open seven additional Yobe Crafted outlets by the end of this year. CEO Leon Tang said the company would accelerate its expansion next year, including entering into key markets in southern Malaysia and the East Coast. “The encouraging response during our first three months has strengthened our confidence in Yobe Malaysia’s growth potential,” he said in a statement. Tang noted that the expansion is built

around a multiformat model comprising Yobe Crafted outlets, Yobe Mini App-to-Cup Vending units and Yobe Crafted Flagship locations. He said the model enables the brand to cater to different consumer occasions while widening access to its frozen yoghurt and dessert range, with its flagship locations offering the full menu, new product innovations and exclusive hidden menus. Tang said Yobe Malaysia positions its premium Greek yoghurt-based swirl as an