Dapsy Sarawak urges delay in SST expansion amid ongoing US tariff negotiations
KUCHING (June 11): The Democratic Action Party Socialist Youth (Dapsy) Sarawak has urged the federal government to postpone the implementation of the expanded Sales and Services Tax (SST) until ongoing trade discussions with the United States (US) are concluded.
Dapsy Sarawak treasurer Wong King Yii said that while he supports the government's broader objective of expanding the tax base to strengthen national revenue and promote long-term economic growth, the short timeframe for implementation presents significant operational challenges.
'Businesses will struggle, particularly in adapting to new compliance and reporting requirements at short notice,' he said in a statement today.
Wong warned that the combined impact of SST-related cost increases and potential US-imposed tariffs could further strain both businesses and consumers financially.
'In this context, a more coordinated and deliberate approach is necessary.
'The government should defer the SST expansion until the tariff negotiations are concluded to avoid unnecessary economic pressure on the rakyat,' he said.
Wong also called on the government to revise the exemption threshold for lessees that qualify as micro, small, and medium enterprises (MSMEs).
He proposed raising the current RM500,000 annual sales threshold to RM1 million to ensure more MSMEs are shielded from immediate cost burdens.
'This adjustment is vital to help MSMEs weather the financial uncertainties that may result from both domestic tax changes and external trade developments,' he said. DAPSY expanded SST US Tariffs Wong King Yii
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