Latest news with #StateSalesTax
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Daily Express
6 days ago
- Business
- Daily Express
Malaysia-China Chamber of Commerce hails positive amendments to SST
Published on: Wednesday, July 09, 2025 Published on: Wed, Jul 09, 2025 Text Size: Yong said the main issue for the business community is legal uncertainty, as unclear provisions and inconsistent interpretations increase costs and erode investor confidence. Kota Kinabalu: The Malaysia-China Chamber of Commerce (MCCC) Sabah has welcomed the State Government's move to amend the State Sales Tax (SST) Ordinance, calling it a necessary step to strengthen legal clarity, improve the appeals process, and ensure more consistent enforcement. The amendment, recently tabled in the Sabah State Legislative Assembly, is aimed at removing ambiguities in the law that have led to confusion and uneven application of tax procedures. MCCC Sabah Women Entrepreneurs Committee Vice Chairperson Yong Hui Sun (pic) said the Chamber, under the leadership of President Datuk Dexter Lau, has consistently engaged with the Government to raise industry concerns and support policies that promote fair and competitive business conditions. 'The Chamber agrees with State Finance Minister Datuk Seri Masidi Manjun's emphasis on eliminating grey areas in the ordinance,' she said in a statement on Tuesday. Yong said the main issue for the business community is legal uncertainty, as unclear provisions and inconsistent interpretations increase costs and erode investor confidence. 'We fully support the State Government's efforts to set clear rules and appeal channels that protect taxpayer rights and create a more predictable business environment,' she said. Yong added that transparency is especially important for small and medium-sized enterprises (SMEs), including women-led businesses, which are often more affected by unclear regulations due to limited resources. She noted that the amendment reflects not only a legal update, but also the government's willingness to engage the business sector in policy-making. 'A clear, enforceable framework gives both authorities and businesses a defined structure to operate within. 'We appreciate Minister Masidi's stance that the law must be 'crystal clear.' This ensures both proper enforcement and clear boundaries for business operators,' she said. She also urged the State to provide proper training to enforcement officers and organise more briefings for the business community once the amendment is passed, to ensure consistent interpretation and application of the law. 'Fair and transparent systems are the foundation for long-term business confidence. 'If the Government and business community move forward together, Sabah is in a strong position to attract sustainable investment,' Yong said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
6 days ago
- Business
- The Star
Sabah businesses hail State Sales Tax Ordinance amendment for clarifying tax rules
Malaysia-China Chamber of Commerce Sabah Women Entrepreneurs Committee vice chairman, Yong Hui Sun. KOTA KINABALU: The Malaysia-China Chamber of Commerce (MCCC) Sabah has commended the state government's decision to amend the State Sales Tax (SST) Ordinance, calling it a vital step toward creating a more transparent and investor-friendly business environment. The legislative amendment, tabled at the recent State Assembly sitting on Tuesday (July 8), aims to clarify taxation provisions, simplify appeals processes, and enhance enforcement. These changes, according to MCCC Sabah Women Entrepreneurs Committee vice chairman Yong Hui Sun, will significantly strengthen legal certainty for businesses operating in Sabah. She stressed that under the leadership of MCCC Sabah president Datuk Dexter Lau, the Chamber has consistently advocated for fair and practical policies that support business growth. 'Unclear rules and inconsistent enforcement raise operating costs and erode investor confidence. 'The government's efforts to provide clearer tax guidelines and strengthen appeal mechanisms will make Sabah a more competitive and attractive destination for investment,' she said in a statement on Wednesday. She added that a fair and transparent taxation system is a strategic economic tool, particularly as Sabah competes for regional investment. 'We fully support Finance Minister Datuk Seri Masidi Manjun's focus on eliminating grey areas. Legal certainty does not just help tax officers, as it also gives businesses the confidence to invest long-term,' she said. The Chamber noted that the amendment reflects the state government's willingness to listen to business concerns and to foster constructive policy dialogue, which she described as a sign of healthy governance. Yong also highlighted the importance of engagement and follow-through, calling for the government to conduct more training for enforcement officers and to organise briefings and dialogue sessions to help the business community understand and implement the changes. 'We have seen before how well-meaning laws can fall short if enforcement is uneven or the rules are not well communicated. For small and medium enterprises (SMEs) and women entrepreneurs, predictability in taxation is critical. Ambiguity often hurts smaller businesses the most,' she pointed out. The Chamber sees the move not just as a legal improvement but as a broader signal of the state's commitment to building a competitive and inclusive economic ecosystem. 'Only with fair and transparent systems can businesses feel secure about investing in Sabah's future. 'When the government and civil society work hand in hand, we can push Sabah toward sustainable and high-quality growth,' Yong said.
Borneo Post
7 days ago
- Business
- Borneo Post
SST amendment bill won't give added burden to taxpayers - Masidi
Masidi KOTA KINABALU (July 8): A Bill to amend the State Sales Tax Enactment 1998 (SST) was passed by the Sabah State Legislative Assembly on Tuesday, with Finance Minister Datuk Seri Panglima Masidi Manjun assuring that the move is aimed at strengthening the State's fiscal backbone without burdening taxpayers. Masidi, when tabling the Bill, said a total of 37 amendments had been carefully drafted to improve efficiency, transparency and accountability in the collection and management of State revenue. 'These amendments are not merely technical adjustments but form part of a holistic effort to ensure our State Sales Tax law remains responsive, fair and effective in today's increasingly complex economic environment,' he told the House. He stressed that the amendments are designed not only to boost Sabah's revenue collection but also to ensure that every taxation process is clear and firmly governed by law. 'As I explained earlier, we have not neglected taxpayers' rights. On the contrary, we are providing mechanisms for fair resolution through appeal channels, instalment payments and agreed composite assessments,' he said. Masidi added that the approach reflected the State Government's commitment to strengthening Sabah's fiscal foundation, closing loopholes, and protecting taxpayers' rights. 'We do not want a tax system that burdens the people. We want a system that is clear, easy to understand and transparent,' he said, adding that with the passing of the Bill, Sabah would be better positioned to manage its revenue while maintaining the trust and cooperation of taxpayers. Masidi pointed out that the SST is an additional source of income allocated to Sabah and Sarawak under Part V of the Tenth Schedule of the Federal Constitution. 'For this, the State Government gazetted the State Sales Tax Enactment 1998 and the State Sales Tax Regulations 1999. The last amendment was in 2018, which at the time covered only three items, Crude Palm Oil (CPO), Lottery Tickets and Slot Machines,' he said. Since then, six more items have been added to the tax net from 2020 to 2025, Petroleum Products, Fishery Commodities, Scrap Iron Waste, Silica Sand, Palm Oil Biomass, and Gold and Silver mined in Sabah. 'This brings the total to nine taxable products. To date, 386 companies hold SST licences, and collections since 1999 up to 30 June this year amount to RM32.26 billion,' he said. Masidi revealed that when the SST was first collected in 1999, it contributed only RM89 million or seven percent of the State's revenue. However, by 2024, SST revenue had surged more than 3,000 percent to RM3.03 billion, accounting for 44.5 percent of Sabah's total income, with an average collection of RM250 million a month. 'This clearly shows that tax revenue is now a major source of funding to ensure the State's fiscal sustainability and economic growth,' he said, while recording the government's appreciation to taxpayers for their contributions towards Sabah's development. Masidi assured that despite the extensive changes, no new taxes were being introduced. 'I want to make it clear — this amendment does not create new taxes. What we are doing is removing grey areas. In fact, this clarity benefits not only the tax collector but also the taxpayer,' he stressed. Moyog assemblyman Datuk Darell Leiking, however, expressed concern that adjustments to upstream pricing could be passed on by operators and manufacturers to end consumers, indirectly burdening the people. Responding, Masidi explained that the main thrust of the amendments is certainty and transparency. 'With this, businesses can plan better because they know exactly what must be paid and what does not need to be paid. Companies that comply will be more competitive, and we have done comparative studies with other jurisdictions to ensure our system aligns with global standards,' he said. Addressing concerns raised by Kapayan assemblywoman Datuk Jannie Lasimbang on whether the changes might restrict court powers, Masidi assured that judicial review rights remain protected. 'I do not believe it can ever be removed. Judicial review is fundamental and cannot be excluded from any law. That is why, for the first time, we are also establishing a Tax Appeal Tribunal for those dissatisfied with any assessment. 'This will provide an additional avenue for taxpayers to appeal, while giving certainty to both tax authorities and taxpayers on what must be paid and how to pay it,' he said. Meanwhile, Masidi reiterated to Bugaya assemblyman Jamil Hamzah that there was no overlap between the State Sales Tax and the Federal Government's SST, as both are governed by separate constitutional powers. 'For the State, our sales tax covers specific activities and products only. The rest remains under federal jurisdiction. What we should really focus on is ensuring that Sabah secures its 40 percent share of revenue collected from the State,' he said. Masidi also clarified to Darell that businesses would need to file separate returns for the Federal SST and the State Sales Tax as they are two different taxes governed by two separate authorities. He assured the House that the longer six-year timeframe under the amendments would give both taxpayers and the State ample room to resolve any issues properly. 'We must look ahead. This law must be robust enough to address challenges, not just now but for the future. If there are still points that require further explanation, my ministry welcomes more discussions, even special sessions if needed,' he said. The amendments to the SST Bill were: Clause 1 contains the short title and the commencement of the proposed Enactment. Clause 3 seeks to amend Section 2 by inserting new definitions, deleting certain definitions, and replacing the definition of 'sale.' The amendment to the definition of 'sale' has been restructured and expanded to clarify that, among other things, the act of transferring taxable goods out of Sabah, removing them from Sabah, or taking them out of Sabah falls under the definition of 'sale' whether or not the transaction takes place within or outside Sabah. Clause 4 seeks to amend Section 8 to empower the Minister to amend or revoke any exemption under subsection (1). Clause 5 seeks to amend Section 10 to make it an offence for any person to conduct business selling or supplying taxable goods without a license or to conduct business at a place or premises not specified in the license. Clause 6 seeks to amend Section 11 by providing a time frame for a taxable person who has ceased business to surrender their license, and by providing that the Director must give reasonable notice to the taxable person before revoking their license. Clause 7 seeks to insert a new Section 12A which explains the issuance of invoices by computer. Clause 8 seeks to amend Section 13 to improve the existing provision regarding the obligation to keep records. Clause 9 seeks to amend Section 14 to empower the Director to require, by written notice, any taxable person to submit a complete or additional return within a reasonable time. Clause 10 seeks to insert a new Section 14A which gives the Director power to allow State sales tax or penalties that have become due and payable to be paid by instalments. Clause 11 seeks to amend Section 15 by including negligence as one of the exceptions allowing the Director to make an assessment at any time. Clause 12 seeks to insert new Sections 15A and 15B. Section 15A gives the Director the power to issue a composite assessment notice following a written agreement with a taxable person who failed to submit a return, submitted an incorrect return, or provided any incorrect information affecting State sales tax liability. Section 15B clarifies that an error or technical defect in an assessment, notice, or other document shall not invalidate it, as long as the assessment and document comply with the requirements of the Enactment. Clause 13 seeks to amend Section 16 to determine the time of sale for taxable goods supplied within the State but subsequently removed or delivered outside the State. Clause 14 seeks to amend Section 17 to allow a surcharge to be claimed as a civil debt to the State Government and to limit judicial review of appeals related to excessive or incorrectly assessed tax, penalties, or surcharges. Clause 16 seeks to amend Section 19 to extend liability to the directors of a company, partners of a firm, or members of an association who held their respective positions when the liability arose. Clause 17 seeks to amend Section 21 by inserting a new category of individuals from whom the Director may collect State sales tax or penalties that have become due and payable. Clause 18 seeks to replace Section 22 to improve its content and to provide the Director with an extended period from three years to six years to claim repayment for any refund made in error. Clause 21 seeks to replace Section 26 by expanding the scope of inspection to any building or place as well as any books, documents, records, or items. Clause 22 seeks to insert a new Section 26A to empower the Director or any authorised State sales tax officer to investigate the commission of any offence under the Enactment. Clause 23 seeks to insert a new Section 29A to enable any authorised State sales tax officer to be given access to any recorded information or computer data, whether stored in a computer or otherwise. Clause 25 seeks to amend Section 31 to make it an offence for anyone to refuse or fail to grant access to any recorded information or computer data, and for anyone to impersonate the Director, State Sales Tax Officers, or an authorised State sales tax officer. Clause 26 seeks to amend Section 32 to empower the Director to impose a penalty equal to the amount of State sales tax that has been or will be undercharged due to an incorrect return or information, if no prosecution is initiated. Clause 27 seeks to amend Section 33 by providing civil remedies for the Director to impose a penalty equal to the amount of State sales tax collected by an unauthorised person, where no prosecution has been initiated. Clause 32 seeks to insert a new Part IXA relating to the power to protect revenue in certain transactions. This new Part contains new Sections 50A to 50C. These new sections provide the definition of 'transaction', the power to disregard certain transactions, and the power to substitute prices, disregard structures, and impose surcharges. Clause 33 seeks to replace Section 54 to improve the provision relating to the service of notices. Clause 34 seeks to insert a new Section 54A to empower the Director to order substituted service if satisfied that service of the notice or document cannot be affected as stated under Section 54. Clause 36 seeks to amend Section 58 by allowing any person aggrieved by a decision of the Director to appeal to the State Sales Tax Appeal Board in the prescribed manner. Clause 38 seeks to amend Section 61 regarding the Minister's power to make rules relating to the State Sales Tax Appeal Board.
Daily Express
08-07-2025
- Business
- Daily Express
MCCC Sabah supports SST amendment to boost business clarity and confidence
Published on: Tuesday, July 08, 2025 Published on: Tue, Jul 08, 2025 Text Size: KOTA KINABALU: The Malaysia-China Chamber of Commerce (MCCC) Sabah has welcomed the state government's move to amend the State Sales Tax (SST) Ordinance, calling it a step toward clearer taxation, fairer enforcement, and stronger investor confidence. MCCC Sabah Women Entrepreneurs Committee Vice Chairperson Yong Hui Sun said the amendment will help eliminate legal ambiguities, lower compliance risks, and strengthen appeal mechanisms particularly benefiting SMEs and women entrepreneurs. She praised State Finance Minister Datuk Seri Masidi's focus on removing "grey areas" in the law, noting that unclear regulations raise costs and undermine trust. Yong also urged the government to provide training for enforcement officers and hold more dialogues with businesses to ensure consistent and effective implementation. "MCCC views the amendment as a sign the government is open to business feedback and committed to creating a transparent, investment-friendly environment," she said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
06-07-2025
- Business
- Daily Express
Speaker on tomorrow's Assembly sitting
Published on: Sunday, July 06, 2025 Published on: Sun, Jul 06, 2025 Text Size: Kadzim revealed that the two-day meeting will also debate three Bills: the State Sales Tax (Amendment) Bill 2025, the Forest (Constitution of Forest Reserves Amendment) Bill 2025, and a new Bill, the Sabah Climate Change and Carbon Governance Bill 2025. Kota Kinabalu: The Second Meeting of the Fifth Session of the 16th Sabah State Legislative Assembly (DUN) set to begin Monday is expected to attract public attention. According to Speaker Datuk Seri Kadzim M. Yahya, this is due to many perceiving this session as the last before the dissolution. Advertisement 'According to the constitution, there must be at least three sittings a year. What's fueling the public's excitement this time is that many assume or feel that this could be the final sitting before dissolution. 'In terms of preparations, nothing special. Everything is as usual, the questions too. This is just the second session in the annual calendar. 'If dissolution happens after this, then this will be the final sitting for this term. But if not, who knows, we may still have a third session to meet the constitutional requirement. Usually, the second session is for supplementary supply bills,' he said. Kadzim revealed that the two-day meeting will also debate three Bills: the State Sales Tax (Amendment) Bill 2025, the Forest (Constitution of Forest Reserves Amendment) Bill 2025, and a new Bill, the Sabah Climate Change and Carbon Governance Bill 2025. 'This time, in addition to the supply bill, we also have three other bills. One is on forestry, which is an amendment. Another is an amendment to the SST, and the third is a new law, a bill on Climate Change and Carbon Governance. 'It's not a special budget, just a supplementary provision for things that weren't budgeted in the previous budget but now need to be spent on, so we need the Assembly's approval for the additional expenditure,' he explained. On public perception that it is difficult to access the Assembly premises, Kadzim clarified that certain rules must be followed by observers in line with the gazettement of the Sabah State Assembly as a restricted and protected area, effective 2 September 2024. 'We're not forbidding or blocking people from coming, but we don't want the DUN to become like an event at SICC where people crowd in. 'So, if people say it's difficult to attend DUN sittings now, that's not entirely true. 'Many YBs, when there are people from their constituencies who want to observe the sitting, we allow it. But not for a full day or every day. If their representative is speaking and they want to come and follow it live, we allow that,' he stressed. He added that the entry rules for the Sabah State Assembly are no different from Parliament since both have been gazetted as restricted areas and therefore prioritise security measures. 'The SOPs and rules are basically the same, it's just that Parliament is bigger. It's even more difficult to get in there, all entrances are tightly controlled. At most, people can enter the lobby area, but not everyone can enter the chamber freely. 'The chamber is a place for debate and speeches. If there are too many people talking, it becomes disruptive. Some don't understand the rules of the House, like clapping is not allowed. The convention is to tap the table as a sign of appreciation, and that distinguishes it from concerts or launch events, which have their own norms. 'Just like in court, you can't clap there either. But no one complains about how hard it is to get into court,' he said jokingly. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
