Putrajaya to clarify SST expansion, vows no burden on M40 and B40 groups

ISKANDAR PUTERI: The government will issue a clearer explanation on the implementation of the revised Sales and Services Tax (SST) framework, which comes into effect on July 1, amid growing public confusion, said Prime Minister Datuk Seri Anwar Ibrahim.
He said recent public statements had led to misunderstandings, particularly over which goods and services will be affected.
"There has been confusion, like the claim that bananas will be taxed under SST, but it refers to imported bananas.
"We agree that better communication is needed, but our priority remains clear, not to burden the lower-income group or the M40," he told reporters after attending after a Parti Keadilan Rakyat event today.
He said the government's aim is to target non-essential imports while ensuring essential goods remain exempt or taxed minimally.
Anwar said that although the policy will proceed, there is room for adjustments on specific items if warranted.
"We are not reviewing the policy, but if certain items need tweaking, we can do that.
"People are upset before reading the list. Let's read it first," he said.
On June 9, the government announced a targeted SST revision.
While sales tax rates remain unchanged for essential items, a 5 or 10 per cent rate will apply to non-essential goods.
The services tax will be extended to six new categories, namely, leasing, construction, financial services, private healthcare, education, and beauty services.
Critics, including Mydin managing director Datuk Ameer Ali Mydin, have raised concerns about taxing imported fruits, arguing that it could impact lower-income consumers.
Anwar, however, encouraged consumers to consider local alternatives.
"Some say even the poor eat imported fruit. I think that's manageable; choose local fruits," he said.
The SST revision is part of the government's broader fiscal strategy to improve education, healthcare, and welfare services through enhanced revenue collection.

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