PETALING JAYA: The Sales and Service Tax (SST) will ease the burden of Malaysians as the prices of goods will not increase, said Tun Dr Mahathir Mohamad.
According to the Prime Minister, the SST will help Malaysians to save around RM20bil annually.
He said the SST will collect around RM25bil compared with RM42bil under the previous Goods and Services Tax (GST).
"Allegations that the SST will increase prices of things are not true. The SST rate is not 16% as claimed.
"Some will be taxed at 10% or even 5% and there are even items which will not even have taxes imposed on them," the Prime Minister told a press conference at Yayasan Selangor here after a Parti Pribumi Bersatu Malaysia supreme council meeting on Friday.
Meanwhile, Dr Mahathir said his upcoming trip to China will be a follow up to Tun Daim Zainuddin's visit.
He said Chinese companies will be invited to invest in productive capacities in Malaysia, using Malaysian labour and sources.
"Tun Daim has brought up certain subjects particularly with regards to contracts given out.
"The fact that Malaysia does not have the money, we cannot afford to borrow too much money.
"We are trying to lessen the amount we have borrowed, otherwise the country can become bankrupt," he said.
On another matter, Dr Mahathir said the supreme council meeting has decided that the party will also be known as Bersatu and it will be used as slogan.
He added that Bersatu has taken disciplinary action against members who sabotaged the party, and assisted other parties during the general election.
"I won't mention who or how many people but these were the people who held press conferences to run down the party during the election period," he said, adding that none were sacked, but "some were suspended".