Najib: Sales and Service Tax will be a double whammy

KUALA LUMPUR: Plans by the Pakatan Harapan government to re-introduce the already abolished sales and service tax (SST) will give a “double whammy” effect on the rising cost of living, said Datuk Seri Najib Razak (pic).

According to the former premier, this was because the recent abolishment of the Goods and Services Tax (GST) by Pakatan hasn’t translated to cheaper goods.

“With the implementation of the SST, the people’s burden will increase and this will be a double whammy,” he said to reporters when met at Parliament lobby on Tuesday (July 17).

Najib also claimed that many Malaysians are disappointed despite the GST being zero-rated, with many saying that the prices of goods have not decreased at all.

“Car prices went down but generally, the prices of goods haven’t gone down and in fact, some had seen a hike in their prices.

“So, Pakatan’s promises in its election manifesto to lower the prices of goods hasn’t been achieved.”

When asked to comment over the King’s support on abolishing GST, Najib said he will soon give a speech in Parliament to speak about the SST.

“Wait, because I want to provide other facts as well,” he added.

The SST is expected to be implemented on Sept 1 after the necessary laws are passed in the current Parliamentary session.

Services will be taxed at 6% and the sale of goods will incur a 10% tax.