Put tax changes on hold, engage stakeholders to ensure clarity, urges former Sabah CM

KOTA KINABALU: The government should pause further tax changes and first engage with stakeholders to restore clarity, affordability, and ease of compliance, says a former Sabah chief minister.
Datuk Seri Yong Teck Lee, who leads the Sabah Progressive Party, said recent policy shifts have confused both consumers and businesses.
'This is not just about paperwork. Harsh and unclear enforcement risks destroying small businesses and livelihoods,' he said in a statement Tuesday (June 17).
Yong was referring to the recent government announcements involving the revised sales and service tax (SST) structure — which expanded SST coverage from 6% to 8% for certain services starting March 1 — as well as upcoming e-invoicing requirements, fuel subsidy rationalisation plans, and stamp duty adjustments.
He said tax enforcement was pressing ahead despite unclear guidelines and fragile economic conditions.
He outlined three key principles that should guide any tax system — clarity in rules, affordability of rates, and predictability in enforcement.
'People must be able to understand their obligations without confusion. Rates must be reasonable, especially when so many are already struggling. And enforcement must not punish those trying to comply,' he said.
He added that the ongoing changes fail to meet these principles, undermining trust, deterring investment, and worsening hardship for families and small enterprises.
Yong also called on the Inland Revenue Board (LHDN) to hold off on enforcing the new tax rules until proper procedures are in place and businesses are financially ready to comply.

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