Google Malaysia will be increasing the SST rate for its Workspace service and streaming services are expected to be hit with it as well.

In a report by news outlet SoyaCincau, Google has sent out an email notifying Workspace users in Malaysia that there will changes to the SST rates on 1 March 2024 onwards, charging 8% instead of 6%.

The changes are reported to be automatic and no action is needed to be taken by the customers.

SST rate increase was first announced by Prime Minister and Finance Minister Anwar Ibrahim back in October 2023 and was set to be enforced from 1 March 2024 by the government.

The new enforcement is part of the government’s plan to increase revenue to generate more fundings for public infrastructure.

In addition to new charges for Google Workshop, streaming services such as Netflix, Disney Hotstar, Viu and more are also expected to see raise in SST rates as well.

Streaming serves were appended with SST back in January 2020, which sees slightly increase in monthly subscription fee costs.

The gaming services such as the likes of Xbox Game Pass, PlayStation Network and Steam may also see the increase of SST rates as well.

Online services aside, some other services may be exempted from the 2% SST increase as the Malaysian government confirmed.

Services exempted from SST rate increaase includes food and beverages and telecommunication as they are deemed essential to the citizens.

Aside from SST rate increase, the government is also set to enforce taxes on luxury goods and capital gains.