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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.
