MoF to engage more with logistics sector on SST hike, says Anwar

 

Ayer Hitam MP Wee Ka Siong said there were concerns that imposing the SST on logistical services would lead to a general increase in prices of goods. (Bernama pic)

KUALA LUMPUR: The finance ministry will hold more engagement sessions with stakeholders from the logistics sector on the sales and services tax (SST) hike before enforcing it, Prime Minister Anwar Ibrahim said.

“These sessions are to gather their input before we decide on implementing the (increased) tax,” Anwar told the Dewan Rakyat during his winding-up speech for the 2024 supply bill.

Anwar, who is also the finance minister, said that the decision to hold more engagement sessions with stakeholders was made after taking into account concerns by MPs when they debated the impact of the SST hike.

He was responding to Wee Ka Siong (BN-Ayer Hitam) who said that MPs were concerned that imposing the SST on logistical services would lead to a general increase in prices of goods.

“(Even) when we abolished (the SST) the prices of (goods) went up, the prices would not go down (later),” said Wee.

The Barisan Nasional-led government had in 2015 replaced the SST with the goods and services tax at a standard rate of 6%.

However, three years later, the GST was abolished and the then Pakatan Harapan government reintroduced the SST.

Anwar proposed a 2% increase in SST when tabling the 2024 budget in October, although it would not apply to the food and beverages sector as well as the telecommunications industry.

Financial experts, however, said the increase was likely to impact consumers as supply chains were integrated. - FMT