13 hours ago
Expansion of SST burdens people and raises prices, says Dr Wee
PETALING JAYA: The expansion of the Sales and Services Tax (SST) will further burden the people and give businesses an excuse to raise prices, says MCA president Datuk Seri Dr Wee Ka Siong.
He said that unlike the Goods and Services Tax (GST), the SST lacks transparency, consistency, and the capacity to generate sustainable revenue.
'The government's continued expansion of SST, likely due to fiscal pressure, is a burden to the people and gives businesses an excuse to raise prices.
'MCA urges the government to take these concerns seriously and consider the constructive feedback from all sectors,' he said on Facebook on Saturday (June 21).
Dr Wee said that reintroducing the GST could ensure the stability and strength of the country.
He said that the GST is widely recognised for its transparency and efficiency.
'A responsible approach would be to exempt certain SMEs and vulnerable groups from the policy, rather than just postponing the rollout.
'A delay is only a short-term fix. In fact, it should be seen as a starting point for reviving the GST,' he said at the E-Invoice Seminar hosted by the MCA Political Education Committee and School of Political Studies earlier today.
Dr Wee added that if GST is implemented, the e-invoice function would be included in the taxation software.
'I emphasised that while the government announced a revised timeline for e-invoice implementation on June 5, simply delaying it won't solve the root issues. MCA is of the view that the e-invoice component is a subset of the GST system,' he added.
Last week, Prime Minister Datuk Seri Anwar Ibrahim said that reintroducing GST would unfairly burden lower-income earners.
He said the implementation of GST would mean the poor, including fishermen, smallholders, low-wage earners, and street vendors, would be taxed on everyday essentials.
On June 9, the Finance Ministry announced that the reviewed and expanded SST rates would come into effect next month.
The measure is aimed at strengthening the country's fiscal position by increasing revenue and broadening the tax base, the ministry said.
