SST is not 'divine law', can be reviewed, says PM polsec
THE government is open to reviewing the extension of the Sales and Services Tax (SST), which will take effect on July 1, said Prime Minister (PM) Datuk Seri Anwar Ibrahim's political secretary (polsec) Kamil Abdul Munim (picture).
He was reported to have said that the extension of the SST is not 'God's law' and it can be reviewed if necessary.
'Every policy will cause complaints in the early stages, that's normal. But in the end, the government will ensure that it is adjusted so that it does not burden the majority of the people.
'I don't think the government will close the door to reviewing this policy if there is a specific segment or sector that needs reconsideration.
'This is not God's law, so if there is a need for improvement, then it should be reviewed,' he said as quoted by Sinar Harian last night.
The government previously announced the extension of the SST to several categories of imported fruits, a move that received mixed reactions, including concerns about its impact on the cost of living for the people.
Defending the decision, Anwar sparked criticism when he used avocados as an example of an imported luxury fruit typically enjoyed by the high-income group.
However, several parties pointed out that imported products also include fruits such as apples and lemons, which are not grown in Malaysia but are widely consumed, including by the low-income group.
Explaining further, Kamil said the main purpose of the SST expansion is to strengthen the country's tax base, which is currently among the lowest in the South-East Asian region, while ensuring it does not burden the people.
He also stressed that basic necessities should be ensured not to be affected by the SST expansion, which he said is necessary to strengthen the country's fiscal base.
Kamil's statement came amid pressure from six major business groups urging the government to delay the implementation of the SST changes, particularly the 8% levy on commercial rental and leasing services set to take effect on July 1.
In a joint statement, the SME Association of Malaysia, Malaysia Retail Chain Association, Malaysia Retailers Association, Federation of Malaysia Business Associations, Bumiputra Retailers Organisation Malaysia and Malaysia Shopping Malls Association warned that the tax could severely cripple businesses already facing escalating costs.
They described the timing and scale of the new tax as 'gravely misguided' and warned it would trigger inflation, shrink consumer spending, discourage investment and threaten the survival of many small and medium enterprises (SMEs). — TMR
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