Najib: Expect 'double whammy' price hikes with SST

Former prime minister Najib Abdul Razak claims that the price of goods and services could rise by 10 and six percent respectively, with the implementation of the sales and services tax.

"The people are worried and doubtful with the implementation of SST because it is expected that prices will rise at least 10 percent for goods, and six percent for services.

"If this goes up, cost of living goes up and this will result in what is called a double whammy," Najib told reporters when met at the Parliament lobby today.

Finance Minister Lim Guan Eng announced the SST rates yesterday.

The new tax is expected to replace the Najib-era Goods and Services Tax (GST) this September.

Najib, however, said Putrajaya had not been able to bring down prices by abolishing the GST.

The former finance minister also said that he will be present more facts on the SST in his speech in the House later. 

"Generally, I can see that the people are disappointed that the GST has been zero-rated, but the prices of things have not gone down. 

"The prices of certain things, like cars, have indeed gone down, but generally, daily items are not costing lesser, so that the effect of Harapan's promise in their manifesto that the cost of living will be lowered, cannot be fulfilled," he said. 

People are further worried and suspicious that the SST will increase the price of things further, he added.  Mkini