Govt to be transparent about SST, says Dr M

KUALA LUMPUR: The Government needs to be transparent with regards to the reintroduction of the Sales and Services Tax (SST), said Tun Dr Mahathir Mohamad (pic).

"We have to test the law (on tax provisions) and we cannot be opaque as the press will ask nasty questions," the Prime Minister told reporters at Parliament lobby after the opening of the 14th Parliament by the Yang di-Pertuan Agong Sultan Muhammad V on Tuesday (July 17).

Dr Mahathir was asked if the Government would be transparent with regard to reintroduction of the SST this Sept 1 to avoid confusion.

This follows concerns that the consumers may end up paying more under the SST or up to 16%.

The provision of services will be taxed at 6% under the reintroduced SST while the sale of goods will incur a 10% tax.

Dr Mahathir said that the SST was not 16%.

"I do not know about the 10% plus 6%. As far as I know, it (SST) is 10%," he added.

He said that it was crucial that the laws are passed by Parliament before the SST could come into force.

The SST is being reintroduced following the abolishment of the Goods and Services Tax (GST) which was introduced by the previous government.