THE government expects an additional RM3 billion in revenue next year through the increase in the sales and service tax (SST) rate to 8% from 6%.

Treasury secretary-general Johan Mahmood Merican said the amount was an estimate made by the Finance Ministry.

“As has been mentioned, the Finance Ministry estimates that it will get RM3 billion from measures related to the sales and service tax,” he said after the post-Budget 2024 discussion programme in Kuala Lumpur today.

In the tabling of Budget 2024 on Friday, Prime Minister Anwar Ibrahim announced the proposal to raise the SST rate to 8% from 6%.

But in order not to burden the people, Anwar said the increase would not include that for food, drinks and telecommunications services.

According to the 2024 Federal Government Fiscal Review and Revenue Estimate Report issued by the ministry, the government is expected to collect RM35.8 billion in SST, or 1.8% of GDP, in line with higher consumer and business confidence. – Bernama, October 16, 2023.