KOTA KINABALU: The Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) yesterday welcomed the reintroduction of Sales and Services Tax (SST) at six per cent for services and 10 per cent for the sale of goods to compensate for the zero-rating of the Goods and Services Tax (GST) since June 1.
Datuk Michael Lui
Its president, Datuk Michael Lui, said the SST was aligned with the government’s aspiration to improve the people’s well-being and put the country’s finances back on track.
Even with prudent and transparent financial management, he said the country’s finances would still be affected without revenue from SST.
On another note, Lui said the extent of the impact of SST on goods prices had yet to be determined as the government had not announced the scope of the tax.
He said the old SST was only imposed on certain imported and local products, as well as six per cent service tax on hotels and restaurants that recorded more than RM3 million in revenue a year.
If the reintroduced SST was based on the old system, Lui believed that only the high-end consumers would be affected by the tax.
He added that there was a huge difference between GST and SST.
Lui said GST was imposed on majority of goods with a broader impact and heavier burden on consumers.
Finance Minister Lim Guan Eng said on Monday that the provision of services will be taxed at six per cent under the reintroduced SST, while the sales of goods will incur a 10 per cent tax.
He said the SST bill is expected to be passed during the current parliamentary sitting and would be implemented in September.