KOTA KINABALU: Retaining Sabah Sales Tax (SST) when the Goods and Services Tax (GST) is implemented in 2015 is a reasonable decision, said Community Development and Consumer Affairs Minister Datuk Jainab Ahmad Ayid.
Commenting on the recent statement by Chief Minister Datuk Seri Musa Aman that the GST would not be replacing the SST which is under the jurisdiction of the Sabah and Sarawak governments, Jainab said there is a need to have a clear picture on both taxes before jumping to conclusion.
“Please understand that the sales tax which will be replaced by the GST is the one under federal jurisdiction through the Sales Tax Act 1972. SST is a resource under the jurisdiction of the Sabah and Sarawak governments as stipulated under the Federal Constitution. Although we are retaining SST, the implementation of the GST is still a saving of six per cent. Under the new policy, there will be no tax on controlled items. Please remember that. We are a very concerned government,” said Jainab.
The SST is imposed on crude palm oil, slot machines and lotteries.
Jainab added that SST is an important tax for the state to ensure the revenues are channeled to the people through various development projects.
“We are talking about Sabah’s economy, we want to have enough revenues to build facilities. The state government is working hard to find resources to develop the state. Both taxes need to be understood, and we do not need speculations on this issue from the opposition,” she said.