SST expansion threatens profit margins, warn groups


Let it be known: A file photo of a sign reminding guests of last year’s SST increase at a hotel in George Town, Penang. — KT GOH/The Star

PETALING JAYA: Small and medium businesses are still reeling from the rise in the Sales and Service Tax (SST) from 6% to 8% last year and are steeling themselves against the fact that the rate will be expanded to cover more sectors this year.

They say that expanding the 8% SST rate would further impact their profit margins, which have been squeezed by the rise in the cost of goods and the minimum wage.

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tax , SST , increase , inflation

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