Expanded SST a bold step, not 'Black Day', says Mahfuz
Its vice-president Datuk Mahfuz Omar described such remarks, particularly from Pas leaders, as populist and irresponsible attempts to stoke public emotions without a rational understanding of the country's economic needs.
He said the opposition's criticisms were devoid of facts and ignored the importance of sustainable national revenue generation.
"This expanded SST framework ensures that government revenue can be collected fairly and redirected to the people through targeted subsidies and aid," he said in a statement today.
Mahfuz stressed that essential items, such as rice, poultry, eggs, vegetables, fish, medicines, education and healthcare services remain exempted from the tax.
"The tax mainly targets luxury spending, not daily essentials. So it is the high-income earners who are more affected, not the general public," he said.
He said the funds generated through SST and the rationalisation of subsidies were being channelled into numerous government aid programmes.
Mahfuz also pointed out that Malaysia's SST rate remained among the lowest in the region, at eight per cent, compared to Indonesia's 11 per cent VAT, the Philippines (12 per cent), Vietnam (10 per cent), Cambodia (10 per cent), Laos (10 per cent) and Singapore's GST (9 per cent).
"Once again, Pas and the opposition have shown their failure to understand the complexities of governing a nation. They oppose for the sake of opposing, without offering constructive solutions. Yet when they govern their own states, they too impose taxes," he added.
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