Explain new luxury tax and higher SST, MP urges govt

 

An MP has asked the government to explain the rise in SST and whether grocery bills for the consumer would now be higher.

PETALING JAYA: A government backbencher has called on Putrajaya to explain the decision to increase the sales and services tax rate from 6% to 8%.

Wong Chen (PH-Subang) said while he understood the government’s intention to broaden the tax base, ordinary citizens must comprehend how the SST increase would affect them.

“For instance, the public should know: If I shop at Mydin, will my RM400 grocery cart now cost RM408?” he said during the budget debate at the Dewan Rakyat today. Government communications should be more straightforward, effective, and clear, he said.

The increase in SST, announced in the budget on Friday, excludes services, such as food and beverages, and telecommunications. However, financial experts have said consumers would be affected despite the exemption because of the impact of the tax on suppliers of food and beverages.

Wong also called for more details on the proposed luxury tax of 5-10% announced in February and whether a list of goods and products to be taxed was available.

“Will this list include the classification of large assets such as cars and homes, which already have elements of taxation? If yes, will this potentially lead to issues of double taxation?” he asked.

‘Not much impact on industries’

Separately, former finance minister Tengku Zafrul Aziz said the increase in SST is not expected to have much impact on industries.

However “there is still the need to monitor what transpires from the decision”, he told reporters in Kuala Lumpur after a meeting on the New Industrial Master Plan, Bernama reported.

Tengku Zafrul, who is currently the minister for investment, trade and industry, said companies would have to incorporate any form of fiscal policy tax into their business plans.

“Industries need to understand the needs of the government. As policymakers we would have looked at the pros and cons to strike the right balance.

“We have fiscal responsibilities, and are also accountable to Parliament and to the people to achieve sustainable growth in the economy and be inclusive to all,” he said. - FMT