SST expansion ‘not divine law', govt willing to fine-tune policy, says Anwar's political secretary
IPOH, June 17 — The expansion of the Sales and Service Tax (SST) will proceed on July 1 as planned, but the government is open to revisiting the policy if necessary, Prime Minister Datuk Seri Anwar's political secretary said today.
Muhammad Kamil Abdul Munim acknowledged growing public concern over the upcoming tax changes and assured that feedback would be taken seriously.
'Of course, there are bound to be concerns or dissatisfaction whenever a new policy is implemented. This is normal,' he told reporters here.
'This might not be the perfect policy. But if there are segments or sectors that require reconsideration, I believe the government will look into those concerns seriously.
'This is not divine law, it's human legislation. So, there's no issue if adjustments or improvements are needed. What's important is that the majority of the people are not burdened by this expansion,' he added.
Muhammad Kamil also gave an assurance that the SST expansion will not affect essential goods and is aimed at strengthening Malaysia's fiscal base.
'Malaysia has one of the lowest tax bases in the region, and the move to widen the SST coverage is aimed at enhancing fiscal sustainability without causing hardship to the public,' he said.
He was speaking after visiting a victim of last month's FRU truck crash in Taman Desa Tambun here.
His remarks came in response to concerns raised by six major business groups, which urged the government to delay the tax hike.
The groups warned the broader SST scope – including 8 per cent tax on commercial rental and leasing – could hurt investment, raise costs and dampen consumer sentiment amid economic headwinds.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
15 minutes ago
- Free Malaysia Today
I am passionate, not emotional, says Rafizi
Former economy minister Rafizi Ramli said those close to him would know that he had 'no emotions'. (Bernama pic) PETALING JAYA : Rafizi Ramli, who resigned as economy minister, says his passion in debating an issue is often misinterpreted by others as being emotional. The Pandan MP acknowledged that many quarters had mocked him for being 'emotional' but said those close to him knew 'I have no emotions'. 'People often mistake emotions, which are personal, with passionate arguments. For me, after I'm done arguing a matter, I don't feel anything at all. 'Politics is just a job. Some people rejoice at winning political posts; to me, it's like getting a new posting at work,' he said in a post on X. The former PKR deputy president said the high and low points in his life were personal occasions like the birth of his son, performing the haj with his father, and the death of one of his closest friends; and that they largely had nothing to do with his political career. 'Politics is just a daily routine for me. Politics, posts; they're all just a job. That's why some might not understand why I have never given up on my political efforts. 'Because politics is just a job. We all work till the day we die.' Rafizi resigned as economy minister after losing the PKR deputy presidency to Nurul Izzah Anwar last month. He remains the MP for Pandan and also heads the PKR division there.
The Star
32 minutes ago
- The Star
Put tax changes on hold, engage stakeholders to ensure clarity, urges former Sabah CM
KOTA KINABALU: The government should pause further tax changes and first engage with stakeholders to restore clarity, affordability, and ease of compliance, says a former Sabah chief minister. Datuk Seri Yong Teck Lee, who leads the Sabah Progressive Party, said recent policy shifts have confused both consumers and businesses. 'This is not just about paperwork. Harsh and unclear enforcement risks destroying small businesses and livelihoods,' he said in a statement Tuesday (June 17). Yong was referring to the recent government announcements involving the revised sales and service tax (SST) structure — which expanded SST coverage from 6% to 8% for certain services starting March 1 — as well as upcoming e-invoicing requirements, fuel subsidy rationalisation plans, and stamp duty adjustments. He said tax enforcement was pressing ahead despite unclear guidelines and fragile economic conditions. He outlined three key principles that should guide any tax system — clarity in rules, affordability of rates, and predictability in enforcement. 'People must be able to understand their obligations without confusion. Rates must be reasonable, especially when so many are already struggling. And enforcement must not punish those trying to comply,' he said. He added that the ongoing changes fail to meet these principles, undermining trust, deterring investment, and worsening hardship for families and small enterprises. Yong also called on the Inland Revenue Board (LHDN) to hold off on enforcing the new tax rules until proper procedures are in place and businesses are financially ready to comply.
Malaysiakini
33 minutes ago
- Malaysiakini
SST expansion 'not divine law', Anwar's aide says govt open to review
An aide to Prime Minister Anwar Ibrahim, in his capacity as finance minister, today said the government is open to reviewing the expanded sales and service tax (SST), which will take effect from July 1. Kamil Abdul Munim reportedly said the legislation is not 'divine law', and so while the new rates will continue to be enforced, future changes remain possible if necessary.
