MCA has called on the government to temporarily halt the planned expansion of the Sales and Services Tax (SST) from July 1, warning that further cost burdens could strain businesses and households.
Deputy president Datuk Dr Mah Hang Soon backed a proposal by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) for a three-month pause, with quarterly reviews, citing ongoing economic uncertainty.
The ACCCIM Socio-Economic Research Centre had earlier recommended a temporary delay, warning that expanding SST amid rising costs could squeeze businesses and push prices higher.
According to Mah, SST has already been extended to sectors such as leasing, construction, healthcare and education, all of which have a direct impact on business costs and everyday expenses.
“Businesses are already grappling with rising costs and global instability. Expanding the tax further at this point risks triggering a chain reaction, where higher operating costs are passed on to consumers,” he said.
Mah said a temporary pause would give businesses, particularly small and medium enterprises, breathing room to manage cash flow while helping to stabilise prices.
He added that more time is needed for companies to adjust to tax changes, including updating systems and financial planning, warning that a rushed rollout could lead to confusion and higher compliance costs.
“A calibrated approach with regular reviews allows the government to respond to real economic conditions rather than committing prematurely to long-term measures,” he remarked.
Mah reiterated that the call to pause SST is not to scrap the tax, but to ensure its implementation is timed appropriately to balance revenue needs with the ability of businesses and consumers to cope.
“At the end of the day, policies must be practical and people-focused. The voices of businesses and the rakyat must be heard and taken seriously,” he added. ‒ April 2, 2026
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