PUTRAJAYA, Aug 30 — There is no guarantee that the implementation of Sales and Service Tax (SST) effective tomorrow will not cause a rise in prices of goods, said Finance Minister Lim Guan Eng today.
“I don’t want to say that SST will not cause price hikes, but if you are comparing to GST (Goods and Services Tax) the impact is less than half,” he told a media briefing on SST.
Lim, however, said the collection of SST, which will be RM23 billion lower than the GST's, will be used to help people in other ways.
Earlier, Customs Department director-general Datuk Seri Subromaniam Tholasy said taxes are not the sole cause of the hike in prices of goods.
“The currency exchange rate, supply and demand as well as monopoly are also the causes of price hikes,” he said.
He said out of 472,000 business that were registered with GST, only about 80,000 registered with SST.
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