Delay in SST scope expansion may cut revenue, but helps public brace for economic challenges


- File pix/The Star

KUALA LUMPUR: The postponement of the implementation of the expanded scope of the sales and service tax (SST) is expected to result in a short-term decline in government revenue, but it also signals an opportunity for traders, the market, and households to prepare for upcoming economic challenges, said an economist.

Bank Muamalat Malaysia Bhd's chief economist Dr Mohd Afzanizam Abdul Rashid said the decision is appropriate and represents a pragmatic move by the government, considering external challenges, including the increase in tariffs by the United States (US) on certain imported goods, which will directly impact Malaysia's export sector.

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