KUALA LUMPUR: The implementation of Sales and Services Tax (SST) has been approved by the Yang di-Pertuan Agong Sultan Muhammad V, thus allowing the new tax system to take place on Sept 1.
In expressing gratitude to the ruler, Finance Minister Lim Guan Eng said the implementation of SST was in line with the Pakatan Harapan (PH) government’s manifesto as pledged in the 14th general election.
It was reported that SST would affect 70,000 businesses, as opposed to 420,000 under the now-repealed Goods and Services Tax (GST).
The SST will see its rate set at 10 per cent for sales and 6 per cent for services.
“After it (Sales Tax Bill 2018 and the Services Tax Bill 2018) was passed in the Dewan Rakyat on Aug 9 and by the Dewan Negara on Aug 20, the Yang di-Pertuan Agong on Aug 24 has given his approval on the implementation of SST.
“This means that the SST can be enforced beginning Sept 1, to replace GST which has been repealed.
“The Finance Ministry would like to express its gratitude to the Yang di-Pertuan Agong over his approval to implement SST, which is in-line with PH’s commitment in fulfilling its election manifesto,” Lim said in a statement today.
Lim said was hoped that the implementation of SST, to be gazetted before Aug 30, would ease the people's cost of living as the government was expected to collect only RM21 billion, as opposed to RM44 billion under the GST.
He reminded that business operators to adhere to regulations and register their businesses under the new tax system.
“This (registration) is to ensure that none of the operators would take advantage (to profiteer) and part of the government’s move to stem hikes in the price of goods which can burden the people.
“Domestic Trade and Consumer Affairs Ministry will monitor the implementation (among business owner and operators) and will take action against profiteering activities.” © New Straits Times Press (M) Bhd