Change is once again afoot, as businesses wait in anticipation of the reintroduction of the Sales and Service Tax (SST), which could be implemented in August.
In May, Council of Eminent Persons chairman Tun Daim Zainuddin revealed that the SST would be implemented within two to three months, in keeping with the new government’s timeline. At the same time, he also said the total SST collection could reach about RM30 bil annually, which is lower than the RM44 bil collection through GST in 2017.
YYC KK Chow Tax Sdn Bhd executive director Zen Chow says the government has indicated that it wants the reintroduced SST – which will be unchanged at its former rate of 10% with any changes to be announced, according to Finance Minister Lim Guan Eng – to be broad-based owing to the amount it expects to collect.
Previously in 2014, before it was replaced by the Goods and Services Tax (GST) in April 2015, the SST had collected some RM17.1 bil.
“Even though some economists expect [collection of] RM20 bil due to increases in the population and the prices of goods, the new figure the government expects to collect is RM30 bil.
“This indicates that the government has the intention to widen the scope or lower the threshold for certain businesses to be subject to be registered under SST [and as such]… different from the old regime,” he explains.