THE government is prepared to reassess the expanded implementation of the Sales and Services Tax (SST) if issues arise that impact the public, according to the Political Secretary to the Finance Minister, Muhammad Kamil Abdul Munim.
Despite the planned commencement of the broadened SST scope on 1 July, Muhammad Kamil stressed that the government welcomes feedback from both industry players and the general public.
“I do not believe the government will close the door to revisiting this policy if there are particular segments or sectors that warrant reconsideration. This is not divine law, so if improvements are necessary, then naturally, it should be reviewed,” he told reporters.
“The main aim of this SST expansion is to strengthen the country’s tax base, which is currently among the lowest in the region, without burdening the majority of the people,” he added.
He made the remarks after visiting Sergeant Mazlan Mat of the Federal Reserve Unit (FRU), who was involved in a tragic accident involving an FRU truck in Taman Desa Tambun on Tuesday. During the visit, Muhammad Kamil also handed over a contribution from Prime Minister and Tambun MP, Datuk Seri Anwar Ibrahim, to the injured officer.
Clarifying public concerns, Muhammad Kamil assured that essential goods remain exempt from the expanded tax list, with SST only applied to specified items as gazetted by the government.
Responding to apprehensions regarding taxation on fruits, he stated, “SST is only imposed on imported fruits, not local produce.”
“There have been complaints from industry players about the insufficient supply of local fruits to meet market demand. This will be reviewed by the government.
“However, the fundamental policy remains not to tax locally produced goods that are unprocessed or unmanufactured,” he said.
He drew parallels with the earlier diesel subsidy rationalisation, which initially faced mixed reactions but was successfully managed post-implementation.
“Every policy will trigger some discontent in its early stages — that is normal. But in the end, the government will ensure it is calibrated to avoid burdening the majority of the people,” he said.
On a separate matter, when asked about the vacant position of Minister of Economy following Datuk Seri Rafizi Ramli’s resignation, Muhammad Kamil said the decision lies with Prime Minister Datuk Seri Anwar Ibrahim.
Nonetheless, he remarked that the successor should possess a strong background and expertise in economics. - June 17, 2025
