FORMER Finance Minister Lim Guan Eng has expressed concerns that the revised SST may just lead to increase in the overall cost of living.
The former Penang Chief Minister is calling instead for a public consultation before the rollout.
Speaking at a press conference in his service centre, Lim, who is the Air Putih assemblyman, voiced concern over the potential impact of the revised tax, particularly on female consumers.
He pointed out that beauty service providers with annual turnovers exceeding RM500,000 will be subject to an 8% SST.
“Women voters cannot be ignored. The government must listen to voices from the ground and avoid rushing into policy implementation,” he said.
The expanded SST also includes a 5% tax on selected imported fruits such as apples, oranges, and grapes.
Lim disagreed with the move, arguing that these are daily necessities for many households and should not be treated as luxury items.
“Such a move risks public dissatisfaction,” he warned.
Other economic sectors affected, included the construction companies with annual revenues of RM1.5 million or more will be subject to a 6% SST while leasing and rental services will face an 8% tax for earnings above RM500,000.
Lim also stressed that he supports the SST expansion but a premature rollout may antagonise small medium enterprises and consumers, who are already struggling with living costs.
“We support taxing non-citizens, whereby in the healthcare sector, foreigners should pay 6% SST, while Malaysians should be exempted,” he added.
Penang PAS Information director Anas Soffy Abd Wahid meanwhile, said the move to hike up taxes on imported fruits may trigger more inflation.
Although the items are imported, many Malaysians still consume them and even use such fruits to make cakes and pastries, he said. - June 12, 2025.
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