The ministry said the GST will no longer be imposed at a rate of 6 per cent from then on, adding that this will be subject to further notice.
The ministry of finance has just announced that Malaysia's goods and services tax (GST), now set at six percent, will be zero-rated come June 1, in line with the new Pakatan Harapan government's promise to abolish the tax within 100 days of it coming to power.
Goods and services listed in the GST Exempt Supply Order 2014 remain exempted from GST.
The "zero per cent" move means that the deeply unpopular GST is effectively abolished.
"As such, all registered business entities have to comply with the GST rate adjustment to 0%".
"Traders must also ensure that the prices of goods and services set are in accordance with the Price Control and Anti-Profiteering Act 2011", said the ministry.
The ministry's announcement comes nearly a week after the Pakatan Harapan (PH) coalition took over as federal government.
Zero rating would essentially remove the price impact of the GST, but retain its tax reporting functions.
The tax would be replaced by a sales and service tax, which was similar to the tax in place before the GST in the country.
Automotive companies are still in the dark regarding the effects of abolishing GST in favour of SST, whether prices will go up or down - and they haven't had a concrete answer for prospective customers.
Zeti said this could be done by re-prioritising projects, improving efficiency, cutting wastage in the public sector and by seeking new revenue sources.