THE sales and services tax bills passed through the Dewan Negara today and will be sent for royal assent.

Opposition lawmakers, comprising 32 Barisan Nasional and three PAS senators appointed by the previous government, did not vote against the bills.

There are 55 senators in the Dewan Negara.

Under the proposed scheme, a 10% sales tax will be imposed on taxable goods manufactured domestically and imported goods.

Additionally, a 6% service tax will be levied on taxable services rendered through business transactions.

Over the past three months, consumers have been enjoying a tax holiday with the goods and services tax zero-rated since June 1.

The sales and services tax will be implemented on September 1.

During the debate, Umno’s Fahariyah Mohd Nordin sought assurance that prices would not rise as a result of the implementation of the SST.

Finance Minister Lim Guan Eng, who undertook the second reading of both bills before they were put to a vote this afternoon, declined to provide a guarantee, saying prices may still be affected by factors such as rising oil prices.

“I cannot give guarantees of the prices. I can only act as the instrument of people, who wish for the GST to be removed.

“But I can assure you that for the items exempted (by the SST), they will not have to pay the 6% tax they would otherwise pay under the GST,” he said.

Some 472,000 businesses were subjected to the GST, while fewer than 100,00 will be affected by the SST.

The SST will apply to 38% of the consumer price index basket of goods and services, compared with the GST which covers 60%.

A total 5,443 goods and services are exempted from the SST, compared with only 545 items under GST, according to the Customs Department.

Restaurant operators, who make more than RM500,000 annually, will have to pay the SST.

Lim said that the government hopes that consumers would “enjoy” the RM17 billion to be returned to them this year, and an further RM23 billion next year.

Earlier today, MCA Senator Ong Chong Swen lamented the futility of opposing the SST bills.

“Whether (the opposition) supports the Sales Tax Bill or not, whether we (the Dewan Negara) pass it or not is irrelevant,” she said. 

Even if it is defeated in the senate, money bills like the the SST bills can only be delayed 10 to 14 days from September 1 under Article 68 of the federal constitution. – August 20, 2018.