The government says that the sales and services tax (SST), which will be reintroduced on September 1, will not be imposed on all products and services, The Edge reports. According to finance minister Lim Guan Eng, the service tax will not be an all-inclusive one. “The 6% service tax applies to selected services and not all services, unlike the goods and services tax (GST),” he said.
He also said that there will also be two different rates of 5% and 10% for sales tax, which is applicable to selected manufactured and imported products, adding that details will be announced when the new SST Bill is tabled in parliament next month.
Lim said this in response to an earlier statement by former PM Datuk Seri Najib Tun Razak that GST was less of a burden to people than SST. He said in his response that simply adding up the sales tax and services tax rates is like “equating apples with oranges.”
“The sales tax is imposed on manufacturers’ and importers’ price, while the GST is imposed on the final consumer price. Hence it is wrong to claim that 10% sales tax is higher than 6% GST. How could the SST burden the people more than the GST, when the expected collection from the SST is estimated at only RM21 billion for a full year, while the GST had expected to collect RM44 billion in 2018, according to the previous government’s projection,” he added.
Lim said that the Ministry of Finance (MoF) has conducted a comprehensive SST review exercise with the assistance of accounting firm PricewaterhouseCoopers to rationalise the tax collection and reporting requirements. This, he said, will ensure that the SST will be far more efficient and less bureaucratic than GST or even the previous SST system, which was in place up to the end of March 2015.
Looking to sell your car? Sell it with Carro.
john
on 
Rakyat Malaysia
on 
hzrl
on 
johnana
on 
AutoFrenz (the original)
on 
Kaiju
on 
Blablabla
on 
michelin
on 
john
on 
Ahmadjr
on 
Pekania
on 
Doraemon
on 
Dug Ong
on 
May
on 
maslan
on 
Jul
on 
tom
on 
A
on 
Bersih
on 
Rightwinger
on 
Ted Wong
on 
soup
on 
Accountant
on 
Why so hard
on 
LatukBandar
on 
kzm (Member)
on 
John May 9 Nangis
on 
Yay
on 
LGE the BEST
on 
Joe labu
on 
HP
on 
Man
on 
st3wpid
on 
zb
on 
Silverado
on 
Van helsing
on 
Olang kita
on 
AI-generated Summary ✨
Comments reflect mixed reactions to the new sales tax system, with some criticizing it for higher effective costs due to multiple layers of taxation, especially for certain goods and services. Several highlight that GST, despite its flaws, was more transparent and efficient in revenue collection, whereas SST has loopholes leading to lower actual tax revenue. There are debates about whether prices for goods, including cars and essentials, will truly decrease; many doubt significant savings under the new system. Some comments express disappointment with the government’s handling of tax reforms, accusing politicians of hypocrisy and manipulation. Overall, sentiments are largely skeptical, with concern that the change may benefit the rich or lead to increased prices, undermining the claimed benefits of the new 10% sales tax.