KUALA LUMPUR: The government believes the Sales and Service Tax (SST) should continue as it is well understood by businesses and the public.
The Ministry of Finance (MoF) stated that SST can be improved to boost revenue and deliver quicker fiscal benefits.
MoF highlighted that SST has been operational for over 40 years, making it a stable revenue source.
Reintroducing the Goods and Services Tax (GST) would require up to two years for businesses to adjust their systems.
The ministry shared this in a parliamentary reply to Datuk Seri Ismail Sabri Yaakob (BN-Bera), who inquired about SST’s advantages.
Expanding SST’s scope is expected to raise an additional RM10 billion annually from 2026.
MoF noted that both GST and SST have distinct pros and cons.
GST applies at multiple stages but includes an input tax credit mechanism.
SST, however, is a single-stage tax without input tax credits but allows targeted exemptions. – Bernama
