GEORGE TOWN: The Finance Ministry's Fiscal Survey 2024 (Tinjauan Fiskal 2024) shows that the Goods and Services Tax (GST) is a better system compared to Sales and Service Tax (SST) says Datuk Seri Dr Wee Ka Siong.
"It's baffling why the present government is bent on implementing SST, which adds to the economic burden of the people," said the Ayer Hitam MP in a Facebook video on Saturday (March 9).
Reading from the book, Dr Wee said the question of double taxation does not arise in GST and added that while the SST rate was imposed on sales (10%) and services (6% to 8%), GST only has a single tax rate of 6%.
"SST is not transparent and taxes are only imposed on certain goods and services which leads to questions of compliance and evasion. However, GST is transparent and encourages compliance and non-tax evasion," said Dr Wee.
He added that there is no need to introduce e-invoicing to prevent tax dodgers as GST will automatically handle the issue as payors have to present all their details for refunds.
"Even a former Finance Minister who opposed the GST is lamenting that SST's taxation scope is widening which is becoming an increasing burden on the people," added Dr Wee.
Dr Wee then said that the government should practice what it preaches and re-introduce GST and reduce the burden of the people and not add on to it with SST.
