SST maintained for industry familiarity and revenue growth says MoF
The Ministry of Finance (MoF) stated that SST can be improved to boost revenue and deliver quicker fiscal benefits.
MoF highlighted that SST has been operational for over 40 years, making it a stable revenue source.
Reintroducing the Goods and Services Tax (GST) would require up to two years for businesses to adjust their systems.
The ministry shared this in a parliamentary reply to Datuk Seri Ismail Sabri Yaakob (BN-Bera), who inquired about SST's advantages.
Expanding SST's scope is expected to raise an additional RM10 billion annually from 2026.
MoF noted that both GST and SST have distinct pros and cons.
GST applies at multiple stages but includes an input tax credit mechanism.
SST, however, is a single-stage tax without input tax credits but allows targeted exemptions. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
A brighter outlook for businesses with solar energy
PETALING JAYA: Solar panels are a significant long-term investment, but many consumers and businesses believe they are worth the cost. IT executive Muhammad Zubair A, 43, from Hulu Kelang, installed a solar panel system in 2022 after seeing his electricity bills surge. Zubair's 9kW solar system cost about RM40,000, with a deposit of RM10,000 followed by monthly payments of RM500 for five years. He explained that the solar panels create a 'contra system' on his bill, where the electricity he generates during the day is offset by the power he uses at night. Initially, his bill dropped to between RM90 and RM100. However, a new electricity tariff structure implemented in July caused his bill to rise to RM300. Despite the increase, Zubair believes solar power still makes a difference. 'Without solar I think it will be much higher,' he said. The high cost of electricity also prompted businesses to switch to solar. YC Global House Sdn Bhd director Yee Chen Wen said the online business installed a solar PV system last year. He said the change significantly lowered their electricity bill, which was a primary concern due to their constant use of air conditioners and computers. Yee views the investment as a necessary long-term strategy and noted that a 15 to 17kW solar system is a viable investment for many small businesses. The government is currently reviewing the Net Energy Metering programme and is expected to announce a new scheme this month. This follows the revised electricity tariff structure to ensure a more equitable distribution of energy subsidies.
Barnama
8 hours ago
- Barnama
RHB IB Keeps Malaysia's 2025 GDP Growth Forecast At 4.2 Pct, With Upside To 4.4 Pct
BUSINESS KUALA LUMPUR, Aug 15 (Bernama) -- RHB Investment Bank Bhd (RHB IB) has maintained its forecast for Malaysia's 2025 gross domestic product (GDP) growth at 4.2 per cent, with an upside potential of up to 4.4 per cent. 'Growth in the second half of 2025 (2H 2025) is expected to moderate to 4.2 per cent (1H 2025: 4.4 per cent), as front-loading activities dissipate and the impact of tariffs gradually sets in. 'Nevertheless, several factors should support the outlook; clearer guidance on United States' (US) tariff rates, easing US–China trade tensions, domestic stimulus measures, and robust consumer and investment spending,' it said in a note today. The investment bank said that the recent cut in US reciprocal tariffs on Malaysia (to 19 per cent from 25 per cent) and the extension of the US–China trade truce to Nov 10 should provide short-term relief and lift manufacturing sentiment. 'Domestically, the RM2.0 billion Merdeka cash handouts are expected to give a modest boost to consumption, adding an estimated 0.2 percentage point to GDP for 2025, based on a 0.5 marginal propensity to consume and Sales and Service Tax (SST) rates of 5–10 per cent,' it said. RHB IB said that its forecast already incorporates downside risks, with the revised US tariff structure estimated to shave up to 0.43 percentage point from the earlier 4.5 per cent projection. 'We remain vigilant to potential pressures on trade and manufacturing from changes in US tariff policies and the possible introduction of sector-specific measures, particularly on semiconductors,' it said. While external developments warrant a cautious outlook, it said Malaysia's domestic economy continues to show resilience, supported by robust consumer spending and steady investment activity. 'Strategic measures under the MADANI Economy framework — including the National Energy Transition Roadmap and the New Industrial Master Plan 2030 — are set to stimulate investment flows over the medium term,' it said, adding that certain domestically oriented industries remain relatively insulated from global uncertainties.
Malaysian Reserve
12 hours ago
- Malaysian Reserve
Ex-foundation CEO learned of Najib's AmBank accounts from media reports
FORMER Yayasan Rakyat 1Malaysia (YR1M) CEO Ung Su Ling only learned from media reports that the AmBank accounts receiving RM42 million belonged to former Prime Minister (PM) Datuk Seri Mohd Najib Razak. As reported by an online portal today, Ung told the High Court that she was unaware that the funds came from SRC International Sdn Bhd when instructed by Najib's then principal private secretary the late Azlin Alias to transfer them via Ihsan Perdana Sdn Bhd (IPSB). The funds were deposited into two AmBank accounts ending in 880 and 906, between late 2014 and early 2015. Ung confirmed arranging three transfers from IPSB — RM27 million, RM5 million and RM10 million — but said she had no additional information about the money. 'At the material time, I was not aware of the source of these funds, nor was I informed of the same by Azlin. I can attest that these funds did not originate from nor belong to YR1M. 'However, based on subsequent media reports and the decision of the SRC International case, I understand that these funds, which were transferred to IPSB, originated from SRC,' she said during examination-in-chief. Ung acted on Azlin's instructions to transfer the funds to the specified bank accounts without knowing who owned them. She was testifying as the first witness for the plaintiffs in SRC International and its subsidiary Gandingan Mentari Sdn Bhd's lawsuit against Najib to recover RM42 million allegedly misappropriated from SRC International 's accounts. When asked about the link between YR1M and IPSB, Ung explained that YR1M supported IPSB financially through grants and funding for community programmes in line with the 1Malaysia initiative. During cross-examination by defence lawyer Farhan Shafee, she said she never felt it necessary to seek further details about the funds. In August 2022, Najib was found guilty on seven counts of abuse of power, money laundering, and criminal breach of trust involving SRC 1Malaysia's funds. His initial sentence of 12 years in prison and a RM210 million fine was later reduced to six years and RM50 million through a royal pardon. The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan is ongoing. — TMR
