PUTRAJAYA, Aug 30 — A total of 5,443 consumer items have been exempted from the new sales and service tax (SST) that will come into play starting this Saturday.
Finance Minister Lim Guan Eng said today that the number of goods exempted under SST is 10 times the number of tax-free items under the controversial goods and services tax, now repealed, introduced by the previous Barisan Nasional (BN) administration.
BN only exempted 545 consumer goods from the GST when it was first rolled out in April 2015.
Under the SST, consumer goods will be taxed between 5 and 10 per cent while services will be taxed 6 per cent.
Lim said 793 goods fall under the 5 per cent tax bracket while 5,612 items will be taxed 10 per cent.
He also listed 25 categories of services that will impose the 6 per cent service tax.
The SST replaces the GST and takes effect from this Saturday. It aims to cut the high cost of living.
At the same briefing, Customs director-general Datuk Seri Subromaniam Tholasy said about 80,000 businesses have registered for the SST, out of a total 472,000 that did so for the GST.
He also said close to 85 per cent of businesses will be SST exempt.
He added that as such, smaller businesses won’t be burdened by the new tax, and he does not expect the amount to be passed down to end customers.
Related Articles Zuraida: Kerajaan pastikan pemaju tidak naikkan harga rumah selepas SST Domestic trade ministry says bracing for complaints once SST implemented Menstrual hygiene products among tax-exempted items