FORMER Finance Minister Lim Guan Eng has sought the intervention of the Ministry of Finance to suspend the revised six to eight percent Sales and Services Tax (SST) on construction sales and commercial property rental.
Lim posted on social media that he hopes the ministry can suspend the six percent SST on property contractors, who record more than RM1.5 million in annual sales.
Also, on small medium enterprises which earn incomes of over RM1 million yearly from the rental of commercial properties.
Although the revised SST is aimed predominantly at the commercial sector, which is said to be recording brisk sales, Lim cautioned that the higher costs incurred by them would be passed onto consumers.
In essence it would also mean more pressure on the escalating margin of living costs endured by the people, Lim said after handing over funds to schools in his Air Putih state constituency in Ayer Itam.
According to the revised SST taxation, if a leaser pays eight percent SST on rental of commercial lots, that’s almost a month more of rental to be incurred.
Moreover, the construction industry can easily reach RM1.5 million in contracts, making it difficult to meet the exemption threshold imposed by the government.
"There are many challenges in the current economy. Many people have expressed to me the hope that the government can differ the implementation of these policies. If there is no extension, I hope the Government will review certain categories."
As a member of the Dewan Rakyat, Lim said that he has debated in Parliament by raising the people's voices to the Federal Government.
"But sometimes policy makers only listen partially. For example, the government no longer levies SST on beauty services, but some import fruits are not exempted."
Lim, who is also the former Penang chief minister, and ex-DAP secretary-general, said that he will continue the struggle to voice out the fears of the working and marginalised class in the country.
"We have been following up on certain issues before, and we had eventually succeeded, and the government decided to change the policies," he said. - July 5, 2025.
