Latest news with #SumbanganAsasRahmah
The Star
21 hours ago
- Business
- The Star
PMO: Tax expansion vital to ensure fiscal sustainability
KUALA LUMPUR: The country's revenue generation remains limited, and tax expansion is necessary to ensure fiscal sustainability, according to the Prime Minister's Office (PMO). Senior press secretary to the prime minister, Tunku Nashrul Abaidah, said that Malaysia is among the countries with the lowest tax-to-gross domestic product (GDP) ratio in the world, at about 12 per cent. Tunku Nashrul emphasised that the government's core principle is clear: the burden will not fall on the majority of the people. Instead, tax revenue will be reinvested into programmes that benefit the people. Among these are the RM13 billion allocated for the Rahmah Cash Contribution (STR) and Sumbangan Asas Rahmah (SARA), benefiting nine million recipients. He also said that RM400 million has been allocated to refurbish dilapidated clinics, and over RM600 million to repair more than 8,000 school toilets, benefitting over five million students. "This is the true foundation of every MADANI government policy, to improve the people's quality of life through responsible and comprehensive measures,' he said during the PMO briefing, which was streamed live on Anwar Ibrahim's Facebook page and the PMO Malaysia Facebook page today. On June 9, the government announced a targeted review of the sales tax rate and an expansion of the service tax scope, both of which will take effect from July 1. The sales tax rate remains unchanged for esential goods, while a five or 10 per cent rate will be imposed on selected items. Meanwhile, the scope of the service tax will be expanded to include six new services: leasing or rental, construction, finance, private healthcare, education, and beauty services. Treasury secretary-general Datuk Johan Mahmood Merican reportedly said that revenue from the Sales and Service Tax (SST) collection is expected to increase by RM5 billion in 2025 and by RM10 billion in 2026, following the implementation of the SST revised and expanded scope starting next month. - Bernama
New Straits Times
a day ago
- Business
- New Straits Times
People come first in every policy, says PM's aide
KUALA LUMPUR: The government remains steadfast in its commitment that any reforms undertaken will not place an undue burden on the majority of the population. The prime minister's senior press secretary, Tunku Nashrul Abaidah, said that despite the achievements the country has enjoyed, the government continues to listen to the concerns of the people regarding the implementation of several new policies. "The prime minister (Datuk Seri Anwar Ibrahim) has emphasised that every decision will be made carefully, with comprehensive involvement from all stakeholders," he said during the Prime Minister's Office daily briefing today. Tunku Nashrul said Malaysia is one of the countries with the lowest tax-to-gross domestic product (GDP) ratios in the world, standing at 12 per cent. "This means that the fiscal space for revenue generation is still limited, and tax expansion is necessary to ensure the country's fiscal sustainability. "However, the government's main principle is clear — the burden will not fall on the majority of the people. "Instead, tax revenues are being reinvested into people-oriented programmes," he said. Among the initiatives are the RM13 billion allocated for Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah, benefiting nine million recipients; RM400 million for repairing rundown clinics; and over RM600 million to refurbish more than 8,000 school toilets, benefiting over five million students, among others. "This is the true foundation of every policy under the Madani government, which is to improve the people's standard of living through a responsible and holistic approach. "All the figures and international recognitions that Malaysia has received are meaningless if they do not directly benefit the people. "As the prime minister frequently emphasises, every success must bring real benefits to the rakyat. "This is the true manifestation of #MADANIBekerja — not just a slogan, but a reform movement that is ongoing, continuously being improved, and translated into tangible outcomes that can be felt by the majority of the people."
New Straits Times
2 days ago
- Business
- New Straits Times
SST reform aims to balance revenue needs, public impact - Treasury sec-gen
KUALA LUMPUR: The government's approach to the Sales and Service Tax (SST) reform is a carefully calibrated balance between raising revenue and shielding the rakyat from unnecessary inflationary pressure, said Treasury Secretary-General Datuk Johan Mahmood Merican. Speaking at the Sasana Symposium 2025 during a fireside chat, Johan said that applying judgement is necessary at some stage, as the government must balance several competing policy goals. "Firstly, the move toward fiscal reform is, in part, to address fiscal sustainability. A few years ago, our fiscal deficit was higher than ideal. We are working towards a target of 3 per cent, but we're not there yet. This is why there's a need to widen the revenue base. "Secondly, public demands are increasing. This year, we have increased the Sumbangan Asas Rahmah (SARA) allocation by RM3 billion, allocated RM400 million to repair dilapidated claims, and allocated over RM1 billion to recruit additional contract doctors. "There are always demands and therefore there is a need to increase the revenue base," he said. Johan said that in the current climate of heightened uncertainty, it is crucial to maintain fiscal buffers to prepare for any unforeseen circumstances. "It certainly goes without saying that it is challenging to raise RM10 billion without completely insulating everyone. So then it comes to this point: how do you then differentiate items? "I think where we did approach it, we did have some reference to looking at the consumer price index (CPI) basket because, in that sense, in undertaking this increase or review of SST, you've seen some estimates. "I think there was an estimate that it would have an impact on the CPI of about 0.25 per cent. Our internal house estimate is slightly lower than that. "We then felt that that was an acceptable level of increase to say the consumer basket of the rakyat as a whole in trying to achieve that goal," he said. When asked why not consider a more progressive wealth tax, despite its challenges, much like SST or Goods and Services Tax (GST), Johan said that while the idea is appealing for broadening Malaysia's tax base and tackling wealth inequality, it poses significant practical difficulties. He said the challenges surrounding social protection and taxation are not unique to Malaysia, adding that implementing a wealth tax is generally more complex than enforcing an income tax. "Income and consumption taxes are based on regular, trackable transactions. For instance, companies pay salaries, and those are documented, making it straightforward to apply income tax. "Similarly, consumption taxes are based on economic transactions, and by registering businesses, you are able to track those transactions and apply the tax," he said. Johan added that the challenges with implementing a wealth tax are more fundamental, as obtaining accurate data or even securing proper declarations of wealth is not a simple task. He added that while the concept of taxing wealth is intellectually attractive, it poses significant complexities from a tax administration perspective. "Even with targeted aid programmes like Sumbangan Tunai Rahmah (STR), we still rely more heavily on income indicators because the government has much more access to income and transaction data than it does to data on personal wealth," he added.
New Straits Times
13-06-2025
- Business
- New Straits Times
Expanded SST to aid B40 and M40 groups - Treasury sec-gen
KUALA LUMPUR: Treasury secretary-general Datuk Johan Mahmood Merican said 5.4 million Malaysians in lower- and middle-income households stand to benefit from the expanded sales and service tax (SST) regime, set to take effect on July 1. He said the anticipated boost in revenue will enable the government to scale up financial assistance for B40 and M40 income groups, such as the monthly Sumbangan Asas Rahmah (Sara). The number of Sara recipients has increased significantly to 5.4 million since April, compared to just 700,000 previously. "As the prime minister highlighted in his 2025 Budget speech, increasing government revenue is essential to enhancing services for the rakyat. "This expansion of the SST is driven by three primary objectives: improvement of services to the people, responsible fiscal management and making fiscal space to face global uncertainty," said Johan. He also said the government has implemented various measures to shield the B40 and M40 groups from the adverse effects of the SST adjustments. Crucially, the Finance Ministry has ensured the SST expansion targets only non-essential goods and services, so that daily expenditure for B40 and M40 families remains largely unaffected. This fiscal move forms part of the Madani economic reform agenda, which aims to reduce the fiscal deficit from 5.5 per cent in 2020 to a targeted 3.8 per cent in 2025. Putrajaya is also directing additional spending towards healthcare, allocating over RM1 billion for permanent contracts and RM400 million to upgrade dilapidated clinics, as well as investing further in schools and rural infrastructure. "The ministry focuses on daily necessities — there is also an element of evaluation," Johan told Free Malaysia Today in a recent interview. Essential items like unprocessed foods (chicken, meat, local vegetables, rice), basic processed foods (flour, sardines, sugar, bread, milk, palm cooking oil), medicines and books will remain exempt from SST (0 per cent). Elaborating on the classification, Johan said the government distinguishes between daily necessities and optional goods. While staple items like sardines, tongkol and kembung remain at 0 per cent SST, premium items such as imported fruits and seafood like salmon, cod and king crab will be subject to a 5 per cent SST. "Optional goods with alternatives are subject to 5 per cent SST, such as electrical appliances and processed foods like jam," he added. Local fruits are not subject to the sales tax, with only imported fruits incurring the 5 per cent rate. Johan expressed hope that the exemptions provided would encourage the consumption of local produce. The Domestic Trade and Cost of Living Ministry also actively monitors prices to curb profiteering, with increased enforcement and provision of affordable alternatives through Jualan Rahmah and Agro Madani. Addressing concerns of potential inflation from profiteering, Johan said the ministry would intensify price monitoring at retail outlets and supermarkets. The government has clarified that the current SST adjustment will not involve any increase to the SST rates — currently set at 0, 5 and 10 per cent — but will broaden the scope of the tax, shifting certain optional goods from 0 to 5 per cent. Unlike the Goods and Services Tax (GST), the SST remains more targeted, minimising the burden on lower-income groups. For instance, service tax on work and education is primarily levied on non-citizens, with the tax imposed on private school fees exceeding a set threshold. Johan described the SST expansion as part of a broader, long-term fiscal reform plan under the Madani economic framework aimed at restructuring the national economy and improving the welfare of Malaysians.
Daily Express
13-06-2025
- Business
- Daily Express
SAPP to assist local retailers on Sara
Published on: Friday, June 13, 2025 Published on: Fri, Jun 13, 2025 Text Size: Those interested can contact Gee Tien Siong (pic) (010-932 7688), Alex Soon (013-540 2288) or email [email protected] for guidance and assistance. Kota Kinabalu: Sabah Progressive Party (SAPP) has pledged to assist local small and medium retailers in participating in the Sumbangan Asas Rahmah (Sara) cashless aid programme. This was conveyed during a meeting between SAPP and MyKasih Foundation, where both sides discussed ways to increase retailer involvement in Sabah. Advertisement SAPP was represented by Deputy President Datuk Richard Yong We Kong, Vice President Gee Tien Siong and Supreme Councillor Alex Soon Kak Foh. The Sara programme, funded by the Federal Ministry of Finance, supports 506,000 recipients in Sabah with monthly assistance ranging from RM50 to RM200 each household. A total of 446 merchants are now participating in Sabah, with at least a few outlets in each district, solving the initial accessibility issue. SAPP noted that many smaller retailers remain uninformed or unsure about the registration process and pledged to help bridge this gap. Yong stressed that local SMEs must not be left out of national aid programmes and deserve full access to economic opportunities. SAPP and MyKasih agreed to cooperate in raising awareness and expanding merchant participation to ensure broader community benefit. Only officially registered businesses with a valid company bank account are eligible to join the programme. Participating outlets will be provided with terminals and connection data. Sales revenue will be reimbursed by MyKasih Foundation on a twice a week basis, every Monday and Friday. According to information provided by the MyKasih team, the foundation currently has recorded 94,000 Stock Keeping Unit (SKU) codes for eligible products, and retailers may apply to include relevant SKUs based on their available inventory. To improve accuracy and product availability, MyKasih recommends retailers submit SKU applications themselves rather than relying on manufacturers. About 93 per cent of recipients in Sabah have utilised their Sara aid, compared to 72 per cent in Semenanjung Malaysia. Those interested can contact Gee Tien Siong (010-932 7688), Alex Soon (013-540 2288) or email [email protected] for guidance and assistance. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
