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Borneo Post
13-06-2025
- Business
- Borneo Post
Sarawak federation calls for delay of SST expansion, suggests GST be reintroduced
Datuk Richard Wee KUCHING (June 13): The Sarawak Federation of Chinese Associations (SFCA) has called on the federal government to delay the implementation of its expanded Sales and Service Tax (SST). The expanded SST policy is scheduled to take effect on July 1. SFCA president Datuk Richard Wee suggested a more measured approach should be considered in view of the uncertainty of US President Donald Trump's tariff war against most countries. 'Until the tariff negotiation is finalised between Malaysia and the USA, our government should not burden the rakyat and the business community further. 'Although such expansion of the SST excludes essential goods, the other affected categories will definitely be impacted. And if it is implemented now, there is a possibility that a further adjustment of prices will need to be imposed,' he said when contacted. Wee said expanding the SST would increase the nation's coffers at the expense of the business community, people, and Malaysian economy. He suggested the Goods and Services Tax (GST) be reintroduced instead. 'For the longer term, the federal government should reconsider the re-introduction of GST, as GST is a more efficient taxation system and if all major countries have similar system in place, there is no reason why Malaysia could not do the same,' he explained. Early last year, the Institute of Strategic Analysis and Policy Research (Insap) suggested the federal government should reintroduce the GST in place of SST. Institute chairperson Datuk Dr Pamela Yong had said this was in view of the government's attempt to boost its revenues with the introduction of the Low Value Goods (LVG) and the still on-hold High Value Goods (HVG) taxes. 'Through our dialogues with the various business associations, GST is still the preferred choice of taxation system due to its transparency and fairness,' she said in a statement. She pointed out the abolishment of the GST in 2018 resulted in a significant revenue shortfall. 'The GST generated a robust RM44 billion in 2017, contributing significantly to the national coffers. It has been estimated that the GST had it not been abolished it would have collected around RM63.5 billion instead of RM35.8 billion in 2024,' she said. Insap also stated the SST and LVG disproportionately impact vulnerable groups. The institute said by focusing on specific goods and services, these measures often place an undue burden on lower-and middle-income groups (B40 and M40) who rely on those goods and services, contradicting the government's stated goal of promoting social equity and inclusive economic growth. 'GST is well-recognised in many advanced countries to have far better outcomes in terms of collection due to its broadband nature,' Yong said, opining it was a grave mistake to have abolished the GST in 2018. 'The priority is to address the people's burden in having to face a downturn in the global economy. This requires stimulus packages and additional fiscal spending, which could have been well supplemented by the GST, had it not been put to an end by Pakatan Harapan 1.0. 'It is time for Malaysia to put political expediency in the back seat, swallow our pride, and re-instate the GST for the sake of the people,' she stated. GST lead Richard Wee Sarawak Federation of Chinese Associations SST


The Independent
04-02-2025
- Politics
- The Independent
National Education Union suspends planned teacher strikes in sixth form colleges
Two days of strike action by teachers in sixth form colleges across England have been suspended. National Education Union (NEU) teacher members at 32 non-academised sixth form colleges were due to strike on Thursday and Friday in an ongoing dispute over pay. But the union has announced that the planned walkouts have been suspended while it consults members on a pay offer from the Sixth Form Colleges Association (SFCA). NEU members have already staged eight days of strike action since November in a fight for a fully-funded above-inflation pay increase. The Government announced last year that teachers in schools across England would receive a fully-funded 5.5% pay rise from September 2024. The SFCA had offered teachers in non-academised sixth form colleges 3.5% for September 2024 to March this year – and then 5.5% from April, the NEU said. Meanwhile, teachers in sixth form colleges with academy status had been offered 5.5% from September 2024, seven months earlier than their colleagues in non-academised colleges, the NEU said previously. An NEU spokesman said: 'The strike action planned for Thursday and Friday has been suspended while we consult members in non-academised sixth form colleges on the pay offer from SFCA, now that we have received firm assurances around future pay parity.' He added: 'We have received firm, written assurances from the SFCA, secured from Government, that there will be no two-tier pay offers put forward in future years and all pay awards will have a single pay settlement date.' NEU teacher members at the 32 non-academised sixth form colleges will now vote on whether to accept the pay offer or not – and no further strikes will be held until the outcome of the ballot is known. Bill Watkin, chief executive of the SFCA, said: 'We are delighted to implement the employers' pay offer that will see hard working teachers in sixth form colleges receive a significant pay increase this year and end the disruption to students' education caused by ongoing strike action. 'Following SFCA's legal challenge and protracted discussions with the Department for Education, an additional £50 million grant was made available to colleges and that enabled us to increase our pay offer from 2% to 4.3%. 'The Department also agreed to use all the funding for Further Education announced at the Budget to boost the 16 to 19 funding rate and made a commitment to treat all 16 to 19 providers equally when it comes to teacher pay. 'Taken together, this is good news for students, staff and industrial relations in the sector.' Another teaching union, the NASUWT, has launched a ballot of more than 1,800 of its members in sixth form colleges in England for industrial action in a fight for a fair pay increase. Voting is due to close next week. A Department for Education (DfE) spokesperson said: 'Ensuring people have the skills they need for the future is crucial to this government's number one mission to grow the economy. 'We recognise the vital role that further education, including sixth form colleges, play in this. 'The October Budget provided an additional £300 million revenue funding for further education to ensure young people are developing the skills they need to seize opportunity and drive growth.'