PUTRAJAYA will reintroduce the sales tax at 10% and services tax at 6% in September, Finance Minister Lim Guan Eng said today.

The rates are the same as it was before the SST was replaced by the goods and services tax (GST) in 2015.

The government is targeting a collection of RM4 billion in SST this year, Lim added.

He said he expected a law on the SST to be passed in Parliament during the current sitting, which began today and ends on August 16.

“The sales tax will be set at 10% while the services tax will be at 6%, similar to the past. We hope to begin collecting SST on September 1,” he said at the National Tax Conference at the Kuala Lumpur Convention Centre today.

At Parliament earlier, Minister in the Prime Minister’s Department in charge of law Liew Vui Keong said Putrajaya would prioritise the repeal of the GST law and introduction of a law for SST in the current sitting.

“The priority, of course, will be abolishing GST. And, of course, introducing the SST,” said Liew, who is also Batu Sapi MP. – July 16, 2018.