Lower income group still protected despite SST hike, says Pasir Gudang MP

PASIR GUDANG: The lower income group will still be protected despite the introduction of a Sales and Service Tax (SST) hike, says Hassan Abdul Karim.

The Pasir Gudang MP added that this was also why the public should register themselves in the Central Database Hub (Padu) system so that they could benefit from the targeted subsidy programme.

"Our people are currently facing multiple issues, from the weakening ringgit to the introduction of SST.

"However, Finance Minister II Datuk Seri Amir Hamzah Azizan has recently told the parliament that our ringgit is expected to strengthen before year-end.

"As for SST, 90% of our lower-income population will not be affected by the 2% increase in tax, and they will continue to receive subsidies for their electricity usage.

"So I hope that they will still have faith in the government led by Prime Minister Datuk Seri Anwar Ibrahim; better days are coming," he said.

He said this after the Pasir Gudang MP and Johor Jaya Assemblyman Chinese New Year Open House at Dewan Taman Molek, here on Saturday (March 2).

Hassan added that the Padu system would help the government ensure that only those eligible were able to benefit from all of the government initiatives.

"Yes, the government has already introduced the e-Kasih system, but the data is not complete, which is why Padu was introduced so that we can create holistic data and understand our people better.

"So any aid can be given directly to their account and not through their MyKad or the Inland Revenue Board (LHDN)," he said.

The SST rate for most services, including overseas-based digital services, will be increased from 6% to 8% starting March 1.

Currently, only food and beverage, telecommunications, and vehicle parking services have been given an exemption from the tax hike.