CLOSE to 97% of goods in the market will be taxed once the expanded Sales and Services Tax (SST) comes into effect on July 1, said MCA president Datuk Seri Wee Ka Siong.
He said this will increase pressure on the public as thousands of products previously exempt from SST would now be taxed.
"Under the expanded SST, people can only enjoy tax exemption for around 1,000 items compared to 8,094 items in 2018.
"The SST will apply not only to wellness and beauty products but also to traditional items such as red dates, black fungus, dried longan and snow fungus, along with basic products like butter, cheese and yogurt," he said as reported by The Star.
He also highlighted that the SST rate had already increased from 6% to 8% on March 1, 2024.
He said the cascading effect of the SST will apply to raw materials, manufacturing machinery and the end product.
"This is why most business associations and guilds, from the rubber, plastics, medicine and oil palm industries to the Federation of Malaysian Manufacturers, have voiced their concerns,"said the Ayer Hitam MP.
Wee said that though the government seems ready to make a U-turn on the SST for imported fruits, it would be better to review or scrap it altogether or face the threat of a silent inflation wave in the coming months.
He added that it was unfortunate the expanded SST would start on July 1, coinciding with the rise of the base electricity tariff and increases in Port Klang tariffs. - June 26, 2025
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