A women passing by Al Ikhsan shop with 0 GST and SST sign at Petaling Jaya. NORAFIFI EHSAN/The Star. Filepic
A little over a year after the implementation of the new Sales Tax and Service Tax (SST), Prime Minister Tun Dr Mahathir Mohamad has indicated that if the rakyat believe that the abolished Goods and Services Tax (GST) may benefit the country, the government will conduct a study on the possibility of reviving it.
The SST regime was reintroduced to replace GST on Sept 1,2018. Each tax regime has its strengths and weaknesses. One of the challenges with SST is preventing a cascading “tax-on-tax” effect which will increase the cost of goods and services.
The government has worked hard to put in place various measures to address this, such as introducing a business-to-business exemption and of course, not imposing SST on essential goods and services. Nonetheless, certain stakeholders are keen for the country to explore the potential reintroduction of GST, in the hope that it will address some of the concerns with the SST regime.
Limited time offer:
Just RM5 per month.
