KUALA LUMPUR: The list of services subject to the expanded Sales and Service Tax (SST) will be announced in early 2025 before being implemented from May 1, 2025, says Lim Hui Ying.
The Deputy Finance Minister said the list would depend on the engagement session with stakeholders currently being conducted by the Finance Ministry.
The government also does not intend to re-implement the Goods and Services Tax (GST), said Lim when winding up the Measures for the Collection, Administration and Enforcement of Tax Bill 2024 at the Dewan Rakyat on Wednesday (Dec 4).
She said SST is easier to understand by businesses and the public as it has been implemented for over 40 years.
SST can still be improved compared to reintroducing GST, which requires a longer preparation period on the part of the government and industry, she said.
"The government will continue to ensure that improvements to the existing tax system do not impact the vulnerable groups -- in terms of reducing regressive effects and controlling inflation -- before assessing the need to introduce new taxes such as GST,” she added.
Earlier, Dewan Rakyat passed the Measures for the Collection, Administration and Enforcement of Tax Bill 2024 with a majority of votes in agreement after the third reading tabled by Lim.
The bill aims to implement amendments to improve the administration of direct and indirect taxes, especially in terms of the tax collection, administration and enforcement processes.
The Labuan Business Activity Tax (Amendment) (No.2) Bill 2024 was also passed. - Bernama
