Delaying SST expansion would jeopardise fiscal stability, Anwar tells Guan Eng
KUALA LUMPUR : Prime Minister Anwar Ibrahim has rejected a call by a backbencher to delay the expanded rollout of the sales and service tax (SST), saying that this would harm the government's fiscal position and its ability to serve the public.
Anwar, who is also the finance minister, said the SST's expansion is expected to generate RM5 billion in additional revenue in the second half of this year and RM10 billion for the full year in 2026.
'The proposal to delay the expansion of the SST's scope would result in our failure to achieve revenue targets,' he told Lim Guan Eng (PH-Bagan) in a written parliamentary reply.
'This, in turn, would affect the government's fiscal position and its ability to carry out its responsibilities to the people.'
Lim, a former finance minister, had asked whether the government could postpone the expansion of the SST's scope until the economy improves.
The SST's expansion took effect on July 1.
Lim, a former Penang chief minister, also asked whether Putrajaya could disclose how much of the new tax burden falls on citizens versus non-citizens.
Anwar said such a breakdown could not be accurately determined as the tax system generally does not record revenue based on taxpayers' citizenship status.
He added that most of the new taxes applied to higher-end or non-essential services, such as private healthcare and education services for foreigners but not locals.
He also said small clinics earning less than RM1.5 million annually and landlords with rental income under RM500,000 a year were exempted.
The finance ministry announced last month that a 5% to 10% tax rate would be applied to non-essential goods, while the service tax would be extended to cover rentals, leasing, construction, financial services, private healthcare, and education.
However, it said imported apples and oranges would be exempted from the tax, citing affordability issues for lower-income groups such as the B40. Beauty services like manicures, pedicures, facials, and hairdressing were also excluded following public feedback.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
15 minutes ago
- The Sun
ASEAN as global peace model affirmed by Malaysia and Brunei
KUALA LUMPUR: Malaysia and Brunei have voiced strong confidence in ASEAN's ability to remain a leading example of diplomacy and global peace. Prime Minister Datuk Seri Anwar Ibrahim highlighted this during a phone discussion with Brunei's Sultan Hassanal Bolkiah following his arrival at the ASEAN Secretariat Building in Jakarta. 'We touched on ASEAN as well as talking about efforts to reconcile Thailand and Cambodia, which agreed to unconditionally stop all forms of violence yesterday. 'God willing, we are confident that ASEAN will continue to be a model region in promoting diplomacy and global peace,' Anwar shared in a Facebook post. The breakthrough follows a special ASEAN meeting chaired by Anwar in Putrajaya, where Thailand and Cambodia agreed to an immediate and unconditional ceasefire to de-escalate border tensions. The meeting saw the participation of Cambodian Prime Minister Hun Manet and Thai Acting Prime Minister Phumtham Wechayachai. Key international stakeholders, including US Ambassador to Malaysia Edgard Kagan and Chinese Ambassador Ouyang Yujing, also attended. The US co-organised the session, while China observed in support of a peaceful resolution. The longstanding border dispute between Thailand and Cambodia spans 817 kilometres, with tensions escalating since late May after clashes near Preah Vihear claimed a Cambodian soldier's life. Renewed skirmishes on July 24 further strained relations before the ceasefire agreement. Anwar later proceeded to Jakarta for the 13th Annual Consultation with Indonesian President Prabowo Subianto. – Bernama
Barnama
an hour ago
- Barnama
Malaysia, Brunei Confident ASEAN Can Be Model Of Global Peace
GENERAL KUALA LUMPUR, July 29 (Bernama) – Malaysia and Brunei have expressed confidence that ASEAN can continue to be a model region in the promotion of diplomacy and global peace. Prime Minister Datuk Seri Anwar Ibrahim said the matter was raised with the Sultan of Brunei Sultan Hassanal Bolkiah when they spoke via phone call shortly after he (Anwar) arrived at the ASEAN Secretariat Building in Jakarta today. 'We touched on ASEAN as well as talking about efforts to reconcile Thailand and Cambodia, which agreed to unconditionally stop all forms of violence yesterday. 'God willing, we are confident that ASEAN will continue to be a model region in promoting diplomacy and global peace,' he said in a Facebook post tonight. Thailand and Cambodia have agreed to implement an immediate and unconditional ceasefire to ease tensions along the disputed border, as a result of a special meeting chaired by Anwar as ASEAN Chairman in Putrajaya, yesterday. The special meeting was attended by Cambodian Prime Minister Hun Manet and Thai Acting Prime Minister Phumtham Wechayachai. Also present at the meeting were US Ambassador to Malaysia Edgard Kagan and Chinese Ambassador to Malaysia Ouyang Yujing. The US is the co-organiser of the meeting while China is present as an observer to support a peaceful resolution to the current situation. The two Southeast Asian neighbours have a history of diplomatic disputes involving an 817-kilometre-long border that has not yet been fully demarcated.
Focus Malaysia
an hour ago
- Focus Malaysia
PMX and the mid-term danger of becoming an ex-PM
I WAS in a restaurant witnessing the televised oath-taking ceremony of Datuk Seri Anwar Ibrahim, later fondly called PMX, on Nov 24, 2022. The moment he took the oath of office everybody in the restaurant regardless of race became euphoric, and people celebrated by hugging one another in happiness to see this auspicious moment culminating after decades of trials and tribulations. Indians were particularly overjoyed as they saw him as a leader who understood their need for equal treatment through affirmative action policies and other Indian-centric initiatives. However, within a few months people became disillusioned with Anwar when his government stalled over the much anticipated reform and affirmative programmes. It was shocking to see Anwar's descent to unpopularity so soon. Very few of the promised reforms have seen the light of day. Anwar started justifying the status quo and began behaving like previous leaders. To the consternation of his multi-racial supporters he began focusing more on Islamic issues and Palestine. Although these issues are important for him he could have also in tandem started his reforms as he has a parliamentary majority. Most if not all the reforms needed only a simple majority to become law but he has been lukewarm or procrastinating leading to plenty of criticism from the people. The biggest test he now faces is the total loss of confidence by the Indian community and it is going to reflect very badly in the next general elections especially in the multi-racial seats mainly in the west coast states. Anwar's descent and loss of popularity began soon after he became prime minister and I have listed some of the issues which he could have handled more wisely, diplomatically and effectively and not allowing them to snowball to risky levels. When an Indian student in a meeting brought up the issue of the unfairness in the intake of university students he brushed her off by bumbling about the social contract and other justifications. The country's education system continues to be discriminatory and lopsided. To date there are no affirmative action policies by the government for the B40 except the cash and other hand-outs. Anwar also referred to the Kuala Lumpur Masjid India temple as haram when he could have settled the issue more amicably. Most Indians were unhappy that the PM, for whom they rallied for so much earlier, had offended them on the temple issue. Furthermore, he has not increased any major allocations or special programmes for the poorer section of the Indian and other communities. The cost of living has risen and burdened the people as the government has not been able to control price increases, citing wars in the Ukraine and Middle East as excuses. His foreign trips in to enhance the image of the country and draw investments has not had the desired effect as investments have hardly trickled in to prop up the national economy. The government's strict control of public assemblies restricted the much needed freedom to voice their concerns and opposition to important issues and luckily the Federal Court recently decided against some of the unfair restrictions. Not doing enough about the Teoh Beng Hock case and the recent Pamela Ling disappearance has also tarnished his image. Similarly, he acted too late in the Yusuf Rawther case when he could have settled the case amicably a long time back and now when it threatens his PM position he applies for immunity for himself. There was also dissatisfaction over how former premier Datuk Seri Najib Razak's royal addendum issue was handled. Wise handling of this issue could have helped him win crucial Malay support. These are some of the issues that have fuelled opposition to PMX leading to the 'Turun Anwar' rally on July 26, and Anwar should realise the negative impact the demonstrations can bring about in Malaysia. Recall that it was the Bersih rallies and the Hindraf protest that brought down Barisan Nasional (BN) in five states in 2008 and 10 years later led to BN losing control of the federal government. As if all these domestic troubles are not enough, as Asean Chair Anwar has to mediate between Cambodia and Thailand where the border clashes are in full swing and endangering the unity of the association. It is still not too late for Anwar as he has more than two years to make amends as well as initiate the much anticipated reforms and socio-economic policies that could become a hallmark of his premiership, and justify the happiness and joy that greeted him when he became PMX. ‒ July 29, 2025 V. Thomas is a Focus Malaysia viewer. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image: Bernama
