Taxes all the way down the line?

Hurting the wallet: When logistics services become taxable in March, consumers may end up paying more for many things. — FAIHAN GHANI/The Star

PETALING JAYA: Logistics services underlie almost all consumption, so when this previously untaxed sector becomes taxable in March, consumers may end up paying more for many things.

This is because the current sales and services tax (SST) regime does not eliminate the cascading tax effect, or “tax on tax”, on every production stage.