Mahathir Admis Will Apply SST

INDUSTRY.co.id - Kuala Lumpur - Malaysian Prime Minister Mahathir Mohamad insists on applying Service and Sales Tax (SST) or Service and Sales Tax to replace Goods and Service Tax (GST) or Goods and Services Tax.

SST 10 percent for sales and 6 percent for services so it is not the same as GST which causes other goods prices to increase, Mahathir said after attending the 14th Session of Parliament First Session by Yang di-Pertuan Agong, Sultan Muhammad V in Kuala Lumpur on Tuesday .

He said the government would first test the implementation of the SST and would look at the draft law or dealing with excise duty to be brought to parliament session this time.

"We have already announced a zero percent to GST, now we make sure that Parliament abolishes GST, as far as I know, 10 percent if you buy, if you do not buy, you do not pay, GST is excise, you buy or not, all prices will increase," he said. Pakatan Harapan (PH) promised to abolish the GST following up the 14th General Election manifesto and the Ministry of Finance reduced the GST to zero percent starting June 1.

The National government introduced a 6 percent GST starting April 1, 2015 and approximately RM44 billion quoted from the system.

GST will be replaced excise sales and service (SST) starting September 1, which is predicted to contribute RM4 billion to the state revenue.

Finance Minister Lim Guan Eng said the rules on SST are planned to be discussed next month before being passed by parliament.

The di-Pertuan Agong Sultan Muhammad V has supported the Pakatan Hope move to abolish the GST, stabilize oil prices and provide assistance in an effort to ease the burden on the people.