ISKANDAR PUTERI: The government will provide a more detailed explanation regarding the implementation of the review and expansion of the Sales and Service Tax (SST) scope, which will take effect on July 1.
Prime Minister Datuk Seri Anwar Ibrahim said the government acknowledges that there has been confusion regarding the implementation, but gave assurances that the government’s initiatives will not burden the lower-income group or the M40.
“We will give an explanation. Sometimes, general statements such as saying bananas will be subjected to SST cause confusion. Actually, it refers to imported bananas.
“But I agree, we need to clarify this because what is important is that we do not want to burden the lower-income group or the M40,” he added.
Anwar said this in a press conference after attending a closed door meeting with Johor PKR leaders and members at a shopping mall in Medini here on Thursday (June 19).
He added that some have argued that even the poor consume imported fruits, but it was something the government can address including making one or two changes.
Anwar said that tax was not something simple where there were some that did not want to pay but it would be a problem as the government wants to improve schools, the poor and public hospitals.
“Our public hospitals are full and the condition of schools in our country are quite bad so we have to think where the government can get funds for it.
“That is we want to tax the high income group and foreigners, which is why imported fruits will be taxed. Even those that are paying private school fees between RM10,000 and RM20,000 would not be taxed.
“But those that are paying private school fees above RM60,000 a year, which they can afford, please pay a little bit for tax,” he said.
Anwar also said that the government would not increase the RON95 price despite the ongoing tension between Iran and Israel at the moment.
He attributed the recent increase in global oil prices to sudden changes in the international market, despite prices previously remaining at relatively low levels.
Anwar said that fluctuations in oil prices are a common occurrence, but the latest spike was particularly abrupt, triggered by the recent Israeli military assault on Iran.
“Oil prices go up and down. Previously, prices were low, but the increase this time has been quite sharp.
“This hike is partly due to increased demand and contributes to national revenue. However, we are not raising domestic fuel prices.”
He stressed that there would be no immediate changes to domestic oil prices, adding that any future adjustments would be made carefully, taking into account the needs and financial capacity of the people.
