Loke (right) talks to the media after the briefing held at Ilham Tower.
KUALA LUMPUR: The Malaysia Retailers Association (MRA) has suggested that the Sales and Services Tax (SST) be implemented at a lower rate or less than six per cent to avoid a significant impact on prices which will indirectly affect consumers.
MRA president James Loke said the lower rate was suggested during his briefing with the Council of Eminent Persons earlier yesterday.
“We share our thoughts on SST, hopefully the (rate) is not that high.
“If high, it would impact the cost and selling price of products.
“We understand that the government needs revenue to support this country but we just hope (for) the wisdom of the Council (members) to come up with a good rate,” he told reporters after the briefing held at Ilham Tower yesterday.
During the briefing, Loke said the Council had queried about the challenges faced by retailers and preparation ahead of the Goods and Services Tax abolishment, which would take effect on Sept 1, 2018.
The GST was introduced in April 2015 at six per cent, replacing the SST of up to 16 per cent.
The GST rate has been zero-rated from June 1, 2018 until Aug 31, 2018.
Loke said the zero-rated GST is perceived as a positive change by consumers as they have more buying power.
“Last weekend, business was good as a lot of consumers waited for the prices to go down,” said Loke who was accompanied by his deputy Shinobu Washizawa. — Bernama