PETALING JAYA: MCA president Datuk Seri Dr Wee Ka Siong has called on the government to clarify the status of the revised Sales and Service Tax (SST) implementation, scheduled for May 1, questioning whether it will proceed, be postponed, or cancelled.
He noted that the Finance Ministry informed him in a written reply dated Feb 6 that the revised SST would be gazetted in the first quarter of this year following stakeholder consultations.
"The proposed implementation includes an increase in the tax rate on certain products and an expansion of the tax scope, in addition to the service tax rate hike and scope expansion implemented in March 2024," he wrote on his Facebook page on Monday (April 7).
However, Wee pointed out that the gazetting has yet to occur, with minimal debate in Parliament.
"Until now, the revised SST has neither been gazetted nor widely debated in Parliament. There is also little evidence of meaningful engagement with industry representatives," he said.
Wee expressed concern that the government might proceed without addressing market concerns or allowing sufficient time for planning.
"In fact, it is too late to schedule for discussion during the second session of this year’s Parliamentary conference on June 23 should the original implementation date for the expanded SST remain unchanged—set for May 1," he added.
With less than 25 days until the scheduled date, Wee urged the government to be transparent about its plans, highlighting the impact of such uncertainty on businesses and the public.
"The government must clearly state whether the SST implementation scheduled for May 2025 has been cancelled or deferred. If deferred, please transparently announce the new target date," he said.
He emphasized that such clarity is crucial for helping businesses, particularly in the manufacturing and export sectors, plan ahead and reduce market uncertainty.
"It will also provide some relief to the public, who are already struggling with a high cost of living and mounting economic pressures," said Wee.