Govt expected to profit about RM3b from SST - Anwar

 

PARLIAMENT | The government will receive an estimated RM3 billion in revenues from the Sales and Service Tax (SST), said Prime Minister Anwar Ibrahim.

Anwar, who is also the finance minister, said this was due to the scope and increase of the tax.

“Through the scope and change of this service tax, the government expects it will collect revenue amounting to RM3 billion,” he said in Dewan Rakyat during Prime Minister Question Time this morning.

However, Mohd Shahar Abdullah (BN-Paya Besar) said RM3 billion is a comparatively small amount considering the government’s expenses.

The service tax was increased to eight percent from the previous six percent effective March 1. However, this new rate does not include food and beverages, telecommunications, and parking services.

Previously, the government also introduced a 10 percent Low-Value Goods Tax (LVG) for online sales (e-commerce), an eight percent Digital Services Tax (DST), as well as a 10 percent Capital Gains Tax (CGT).

The government will also introduce a High-Value Goods Tax (HVGT) from May 1 as high as 10 percent as announced by Anwar during the presentation of the Budget 2024.

These measures are part of the government’s efforts to improve the country’s financial resilience while reducing its budget deficit.

Meanwhile, Anwar defended the SST hike, saying it does not affect the prices of essential goods and services.

He added that it has a small scope and many exceptions including utilities such as water and petrol.

He also said it focuses on activities related to discretionary services and inter-business activities. - Mkini