THE government’s move to increase the sales and service tax (SST) from 6% to 8% does not involve all citizens but targets the rich instead, said Batu Pahat MP Onn Abu Bakar.He added that the 2% increase that came into effect on March 1 imposed on logistics, brokerage and karaoke services are services that are not used by most people daily.“I wonder why the opposition (online supporters) play a lot on this issue when the 2% increase is only focused on the rich.“For example, the electricity SST. The government imposes additional charges on consumers who spend more than RM220 thus 85% of consumers are not charged,” he told Suara Keadilan.According to him, the government’s move to not impose any tax increase on the majority of services including food and beverages, logistics, telecommunications and vehicle parking proves that the government is not pressuring the majority of the people especially the B40 group.Since March 1, the increase in service tax by 2% has often been the main point of attack by the opposition. Among them, they claimed an increase of 8%. Likewise, the increase is referred to as SST, while the government has only increased service tax.However, the opposition is not the only body urging the government to reconsider the SST hike.Bagan MP Lim Guan Eng has also urged the government to review the 2% service tax hike and the high-value goods tax.The former finance minister said the government should postpone tax measures that burden the people. He argued that the authorities must wait for the economy to improve before imposing the new tax increases.“We do not yet know if the economy will recover by the end of this year, including the value of the ringgit, which is expected to recover in the second quarter of this year.“It is hoped that the matter can be reconsidered and reviewed, including the sales and service tax (SST), which increased from six to eight percent,” Lim said while debating the King’s speech in the Dewan Rakyat. – March 9, 2024
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