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Sarawak Timber Association calls on federal govt to re-introduce GST
Sarawak Timber Association calls on federal govt to re-introduce GST

New Straits Times

time2 days ago

  • Business
  • New Straits Times

Sarawak Timber Association calls on federal govt to re-introduce GST

KUCHING: Sarawak Timber Association (STA) has called on the federal government to re-introduce the Goods and Services Tax (GST), saying businesses in Sarawak generally welcomed it compared with the Sales and Service Tax (SST). STA chief executive officer Annie Ting said most businesses already had GST-ready accounting systems and their personnel were also familiar with compliance procedures in the previous implementation from April 2015 to August 2018. "Hence a reintroduction of GST may not require a long preparation of 18 months like when it was introduced in 2015," she said in a statement today. Ting reckoned that a short six-month period would suffice for its smooth re-implementation. She added that as previously experienced, GST could bring in higher and stable revenue for the government, which were crucial for economic stability and development funding. She said that it was generally felt that GST could be introduced at a low rate, say three per cent, instead of six, to mitigate price increase which may be one-off and inflation. Ting said targeted subsidies to B40 households, such as direct cash aid, could be dispatched to offset their burden on price hikes, adding that basic groceries and essential services such as education and healthcare service might be exempted from the tax. Ting said the expanded SST, which coincided with Phase 3 of the e-invoice rollout, had left businesses scrambling to adapt to new compliance requirements on a tight deadline. "While consumers may receive temporary relief, businesses face a permanent increase in complexity and cost," she said, adding that the cascading tax effect inherent in the SST system remained, where taxes had accumulated through the supply chain, ultimately raising the cost of doing business. "For industries like timber, the reclassification of previously exempt goods such as sawn timber and plywood into the five or 10 per cent sales tax bracket presents a significant challenge. "This situation is further complicated by the intricate sales tax exemption mechanisms for raw materials, which create compliance burdens for manufacturers producing both taxable and non-taxable goods. "These industry-specific issues highlight a disconnect between broad fiscal policies and the granular realities of business operations," she said. She said Malaysia's fiscal health required a stable revenue stream and GST was the best option for long-term economic resilience despite issues such as slow refunds. "Any effort to strengthen the country's fiscal position, including through the SST, must be built on transparency and accountability. "Without addressing crucial points such as leakages and weak governance, even the most well-designed tax measures will struggle to achieve their goals," she said. She said the federal government, rather than simply introducing new taxes or expanding the scope of the SST, its focus should be on restoring public trust and ensuring the responsible use of public funds. "A fair and effective tax system can only succeed when revenue is managed holistically and with integrity," Ting said.

Full house at PKNPk's 'Special Coffee Series' in Perak
Full house at PKNPk's 'Special Coffee Series' in Perak

New Straits Times

time2 days ago

  • Business
  • New Straits Times

Full house at PKNPk's 'Special Coffee Series' in Perak

KUALA LUMPUR: Perbadanan Kemajuan Negeri Perak (PKNPk) has drawn a full house with the 16th edition of its Special Coffee Series forum today. This underscores strong interest from businesses in understanding the expanded scope of the Sales and Service Tax (SST), it said. PKNPk said the forum provided an informal yet high-impact platform for direct engagement with officials. This allows participants to raise questions and gain guidance on issues such as sector-based exemptions, transitional arrangements and updated registration processes. PKNPk chief executive Datuk Redza Rafiq Abdul Razak said the session aims to go beyond tax compliance by encouraging clear, informed decision-making and building business resilience. "We don't want policies to exist in silos, detached from the realities on the ground. This is not just about tax compliance, but it's about helping businesses operate with clarity, make informed decisions and remain competitive," he said in a statement. Redza added that the initiative reflects PKNPk's role as a proactive enabler and connector between government institutions and the private sector. Held at Hotel Casuarina @ Meru, the session attracted nearly 300 participants, including entrepreneurs, manufacturers and industry players from across Perak. The event was co-organised with the Royal Malaysian Customs Department (Perak) and the Federation of Malaysian Manufacturers (Perak). The Special Coffee Series has become one of Perak's most trusted platforms for industry-government dialogue, with six sessions held in 2025 alone. It is part of the Perak Sejahtera 2030 plan under the investor-friendly programme, aimed at promoting transparency and a business-friendly policy environment. Participants responded positively to the open dialogue, with many appreciating the practical, real-time feedback, a shift from conventional, bureaucratic sessions. "In a fast-moving world, communication between government and industry needs to be faster, more open and more responsive. That's the very purpose of this series.

No move to raise SST threshold for construction sector
No move to raise SST threshold for construction sector

New Straits Times

time2 days ago

  • Business
  • New Straits Times

No move to raise SST threshold for construction sector

KUALA LUMPUR: The government has no plans to raise the Sales and Service Tax (SST) registration threshold for taxable construction services from RM1.5 million to RM3 million, said Deputy Works Minister Datuk Seri Ahmad Maslan. During the Minister's Question Time in the Dewan Rakyat, he said the Works Ministry had not submitted any request to the Finance Ministry to review the threshold, despite requests from the industry. "As of now, there have been no discussions to raise the RM1.5 million threshold. It remains unchanged, and we have no plans to increase it to RM3 million. "This matter falls under the purview of the Finance Ministry. However, we understand the need to consider a revision if necessary. But so far, there has been no request to do so," he said. Ahmad was responding to a question from Abdul Latiff Abdul Rahman (PN–Kuala Krai) on whether the government was prepared to consider the industry's proposal to raise the SST threshold for taxable services, particularly in the construction, rental, and leasing sectors. Currently, construction services are subject to a six per cent service tax. The scope includes all works related to infrastructure, commercial buildings, and industrial facilities. The tax applies when the total value of taxable services reaches RM1.5 million within 12 months, a threshold designed to ease the compliance burden on small and medium-sized contractors. Meanwhile, Ahmad Maslan said the government does not tolerate delays in project delivery. He said companies that fail to complete projects even after two or three approved extensions of time (EOT) would be subjected to Liquidated Ascertained Damages (LAD) fines, calculated based on the number of days delayed. "Delays can cost contractors tens of thousands of ringgit per day. This becomes a serious obstacle. If companies are repeatedly fined for delays, they will not be awarded government projects in the future," he said. He was responding to a supplementary question on how the government handles delayed projects where contractors seek additional costs and EOTs, including the case of the Sungai Durian project, which has already been granted three extensions.

Paying more and understanding less under the new SST - when policy starts to feel like a prank
Paying more and understanding less under the new SST - when policy starts to feel like a prank

Sinar Daily

time3 days ago

  • Business
  • Sinar Daily

Paying more and understanding less under the new SST - when policy starts to feel like a prank

YOU wake up, scroll the news, and there it is. The Sales and Service Tax (SST) naik lagi (increases). No warning. No explanation. Just another quiet announcement slipped under the door like a final notice you did not know was coming. What was already expensive becomes just a little harder to justify. Raising taxes is not the issue. Every country needs revenue. But when new taxes arrive without conversation, context or empathy, they stop feeling like policy and start feeling like punishment. This is not governance. It is a widening gap between those who make the rules and those who live by them. In 2024, the Prime Minister declared a war on sugar. It was a solid move. Malaysia has Southeast Asia's highest rate of diabetes. One in six adults has it. Over half the population is overweight. Our roti canai is glorious, but our blood sugar is alarming. So we understood the logic. Tax sugary drinks. Encourage healthier living. We cut down our Milo ais (iced Milo). We nodded along. Then came news that fruits were being taxed. The one food group every doctor, campaign, and mother tell you to eat more of. Suddenly, healthy eating sounded like a lifestyle upgrade. Finance Ministry later clarified that SST only applies to imported fruits, not locally grown ones. Technically, this makes sense within the luxury classification framework. But practically, it complicates everyday lives. Many of the fruits Malaysians regularly consume such as pineapples, bananas and certain melons are imported depending on season and supply. It is unrealistic to expect households to rely solely on local produce. Some fruits are simply not available locally or differ significantly in taste and quality depending on origin. What was once a routine grocery item is now framed as a luxury. That framing is what makes the policy feel out of touch. We are being told to live healthier while watching nutritious choices become more expensive. It is like telling people to exercise more, then taxing the tools to do it. Running shoes, for instance, fall under taxable goods. If wellness is truly a national priority, policies should align with the lived cost of pursuing it. When the Prime Minister joked that if avocado is taxed, then do not eat avocado, it echoed a past that still stings. A few years ago, when grocery prices soared, another Prime Minister said if you cannot afford it, eat kangkung. The backlash was swift and loud. These comments, while perhaps meant in jest, reflect a deeper disconnection. People are not just budgeting avocados. They are budgeting protein. They are rationing electricity. They are quietly dropping fruits, supplements and essentials from their shopping lists. And just like that, food became a punchline. Just Fruits staff were seen arranging local and imported fruits following the new tax on imported fruits, with apples and oranges exempted as they are not grown locally and are popular during festive seasons on July 28, 2025. (BERNAMA PHOTO) The frustration is not just about the cost of living. It is about the lack of clarity, sincerity and structure in the way these changes are communicated and implemented. There were no widespread town halls. No consultative surveys that invited the public in. Policy changes roll out like surprise quizzes, and everyone pays if they fail. And I could not help but wonder if anyone in government is listening at all. Starting this month, the new RP4 electricity tariff was implemented. The base rate is now 45.40 sen per kilowatt hour. On paper, users could save up to 19 per cent if they use electricity during off peak hours and meet technical conditions. Large scale commercial users such as data centres face rate hikes of up to 14 per cent. For most households, the impact depends on how and when they consume electricity. Time of use pricing and targeted subsidies make sense theoretically. But practically, the average consumer may not have the tools, understanding or flexibility to shift usage. Without proper guidance, the burden quietly returns to the consumer. The middle class, particularly the M40, is especially affected. They earn too much to qualify for subsidies but not enough to comfortably absorb new costs. They receive no exemptions. But every change from SST to RP4 seems to land hardest on them. It is not that they are being ignored. It is that they are being assumed resilient. Even the recent minimum wage increase left a sour note. It raised the baseline for new hires but offered no mandate to adjust wages for existing workers. Someone loyal for five years could now earn the same as someone hired yesterday. That is not wage progress. It is wage erosion. Not too long ago, RM2,000 a month could rent a modest home and support basic meals. Today, that same amount might not even secure a studio apartment, let alone cover groceries and transportation. Prices have surged. Wages have stalled. And now, more taxes. More adjustments. More announcements. The rakyat is not asking for miracles. We are asking to be heard. We are asking for transparency, logic and respect. We are asking for policies that make sense when they reach the checkout counter, the electricity bill, the pharmacy. Because this is not about rejecting taxes. It is about ensuring fairness. It is about designing systems that work with, not against, the public's reality. You cannot tell people to eat healthy and then make fruit cost more. You cannot promote wellness while keeping wages stagnant. You cannot claim affordability while shifting more burdens onto the rakyat's backs. Even healthcare reform has turned into a question mark. The new medical and health insurance/takaful (MHIT) scheme, aimed at offering affordable insurance coverage, is proposed to be voluntarily funded through our EPF (Employers Provident Fund) Account 2. That is our retirement fund. That is emergency money. The last thing most people want to touch. And I could not help but wonder how long we can keep borrowing from our future to survive the present. Malaysia does not lack talent or ideas. We lack alignment. We need policies that consider context, behavior, timing and impact. We need clearer messaging, better engagement and actual feedback loops. Not just press conferences. This is not to say the rakyat is crumbling. But the pressure is real. The resilience is not infinite. The mental load of budgeting, adapting, and adjusting is growing heavier. We understand the government needs revenue. We also know times are tough globally. But the rakyat needs dignity. We need coherence. We need to be included, not just informed. Because when people do not understand why they are being taxed, they feel punished. When announcements come without explanation, they feel disregarded. When food becomes a joke and fuels a gamble, they feel alone in the system meant to support them. At this rate, it is not just SST and TNB bills that are climbing. It is anxiety. It is frustration. It is the quiet cost of being unheard. And the most painful irony of all is that the checkup for rising blood pressure might just be paid for with our retirement savings. Muhammad Naim Muhamad Ali, PhD, also known by the moniker Naim Leigh, is a Communication and Media Studies lecturer at the University of Wollongong Malaysia. The views expressed in this article are his own and do not necessarily reflect those of Sinar Daily.

Domestic Trade Ministry to stay on alert for potential misuse following fuel subsidy rationalisation
Domestic Trade Ministry to stay on alert for potential misuse following fuel subsidy rationalisation

The Star

time5 days ago

  • Business
  • The Star

Domestic Trade Ministry to stay on alert for potential misuse following fuel subsidy rationalisation

ALOR SETAR: Proactive monitoring will be carried out at all petrol stations to prevent any misuse in the purchase of subsidised RON95 petrol by consumers once the petrol subsidy rationalisation exercise is implemented, says Dr Fuziah Salleh. The Deputy Domestic Trade and Cost of Living (KPDN) Minister said her ministry has anticipated various possibilities that would require enforcement officers to be more vigilant during inspections. 'KPDN has already considered possibilities such as a single MyKad being used repeatedly (to purchase subsidised petrol). 'These are among the issues we are aware of and are looking into ways to address,' she said after taking part in an Op Kesan 4.0 inspection at a supermarket here on Friday (July 25). Fuziah said the use of MyKad allows the government to track any unusual purchases or instances of RON95 petrol being pumped beyond the allowable limit for a single vehicle. She added that purchase records could help authorities detect unusual fuel transactions, enabling action to be taken, and stressed that KPDN would remain vigilant in identifying any instances of leakage or misuse. On Op Kesan 4.0, which was launched following the expansion of the Sales and Service Tax (SST) on July 1, Fuziah said 950 premises were inspected, involving 3,965 stock-keeping units (SKUs) nationwide. Of that number, 950 price information notices were issued under Section 21 of the Price Control and Anti-Profiteering Act 2011 (Act 723) and 23 complaints were received for further investigation. Op Kesan 4.0 aims to prevent traders from taking advantage by raising prices unreasonably or engaging in profiteering under the pretext of the SST adjustments. – Bernama

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