Short of funds, Pakatan has no choice but to introduce SST, says Najib  

Kamles Kumar Kamles Kumar Updated 7 years ago · Published on 30 Jul 2018 1:46PM · 3 Comments

Pakatan Harapan promised in its GE14 manifesto to abolish the GST, which is zero rated until the new sales and services tax takes effect. – The Malaysian Insight file pic, July 30, 2018.

PAKATAN Harapan has no choice but to introduce the sales and services tax (SST) to make up the shortfall in revenue after abolishing the goods and services tax (GST), said former prime minister Najib Razak.

“If you don’t have GST, in a year is about RM43 to RM44 billion loss of revenue. It has to be compensated in some other way, otherwise the government cash flow will be seriously impacted,” Najib told reporters at the Parliament lobby today.

“I guess they have no choice but to introduce it.”

He added that if SST is not implemented on September 1, as planned by the government, there will be “serious implications” to government revenue.

PH has set September 1 for the SST to come into effect. It aims to table the bill for the SST next week and expects it to be passed and gazetted by August 28.

The SST sets three tax rates – 0%, 5% and 10% – for goods and a flat rate of 6% for certain services.

Only businesses that earn more than RM500,000 will be eligible to levy the tax. – July 30, 2018.

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Comments

  • That's what exactly PH government is doing. Obviously our present PM does not need any advice on this issue.

    Posted 7 years ago by Tanahair Ku · Reply

  • I think when SST starts to be implemented, people should know what's gonna hit them. I've read one article that help me get more knowledge and be more prepared when SST comes. I think others should get to know about it too. I've linked the article below.

    https://loanstreet.com.my/learning-centre/sst-vs-gst

    Posted 7 years ago by Anis Azry · Reply

  • A govt can always find ways to mitigate any shortcomings in SST implementation, in order to make it workable, like introducing an element of GST-like device, as some experts have previously suggested?..

    Posted 7 years ago by MELVILLE JAYATHISSA · Reply