KUALA LUMPUR: The government has decided to maintain the existing Sales and Services Tax (SST) structure, while implementing improvements to ensure a more efficient and effective taxation system, says Deputy Finance Minister Lim Hui Ying.
"SST is a more targeted taxation system and has been used in Malaysia for over 40 years, and is a system that has been understood by industry, traders and the public.
"The implementation of SST can also provide a faster fiscal impact to the government," she said during a Question and Answer Session at the Dewan Negara on Tuesday (Dec 9).
She said this in response to a supplementary question from senator Datuk C. Sivaraj regarding the government's approach in considering the re-implementation of the Goods and Services Tax (GST) or improvements to the SST system.
"The government has taken note of the benefits of the GST system, but as Prime Minister Datuk Seri Anwar Ibrahim has previously explained, the government does not yet intend to implement GST.
"The move to reintroduce GST requires a longer preparation period, possibly up to two years, to give companies time to update the system before GST is implemented," she said.
At the same time, Lim said the government was considering various factors before deciding on the most suitable tax method to strengthen the country's fiscal position.
"The government is considering the overall structural aspects of the existing national taxation system, the room for improvement that can be made, the current economic position, the government's revenue needs and the people's overall standard of living," said Lim. – Bernama
