THE MCA today said despite the exemptions, everyone, including those in the B40 and M40 groups will be affected by the increase in the Sales and Service Tax (SST).
Party president, Datuk Seri Dr Wee Ka Siong said this was because of the 'snowball effect' the SST will have on the whole nation.
"Inevitably, factories, warehouses, and shops will increase their rent, leading to a hike in the price of goods.
"Though those who use less than 600 kWh a month in electricity would be exempted from SST, the fact that the 2 per cent increase applies to commercial entities means that it would sooner or later still affect those in the B40 and M40 groups," he said in a Facebook posting.
At the end of the day, Wee said consumers will be the ones who bear the increased cost.
"Take for example a spoon. Its original price may be RM5, but the 2 per cent SST increase will in the long run have a snowball effect.
"This is because the factory that made the spoon, the warehouse that stores the spoon, and the shop that sells the spoon would all charge more at every stage," he said.
He said there was no guarantee that the price of the spoon would remain at RM5 following the tax increase.
"At the end of the supply chain, it will all add up and who will be affected the most? The average consumer, ” he added. - The Vibes, March 2, 2024
