IPOH: The government will continue to consider feedback from various stakeholders in its review of the Sales and Service Tax (SST) rates and the expansion of its scope, according to political secretary to the Finance Minister Muhammad Kamil Abdul Munim.
He assured the public that the expanded scope of the tax would not apply to all goods, but only to specific segments previously announced by the government.
“Not all goods are subject to the expanded SST. For example, local products that are not manufactured or do not undergo industrial processing will remain zero-rated under the SST,“ he explained.
“We acknowledge there will be concerns and complaints, but in implementing any policy, if there are elements that warrant reconsideration, I don’t believe the government would hesitate to review them,“ he added.
He made these remarks during a Ziarah MADANI visit to the home of Sergeant Mazlan Mat, 50, a member of the Federal Reserve Unit (FRU) who was involved in a fatal accident in Teluk Intan on May 13 here today.
On June 9, Second Finance Minister Datuk Seri Amir Hamzah Azizan announced that the government will carry out a targeted review of the Sales Tax rate and expand the scope of the Service Tax, effective July 1, in line with the 2025 Budget announcement made last October.
According to a Finance Ministry statement, the measure aims to strengthen the country’s fiscal position by increasing revenue and broadening the tax base, without placing an undue burden on the general public.
Muhammad Kamil noted that public concern over tax policy changes is not uncommon, citing similar reactions during the recent rollout of targeted diesel subsidy rationalisation.
“At first, many questioned the diesel subsidy policy, but eventually recognised the benefits it delivered,“ he said.
Meanwhile, addressing the vacancy in the Economy Minister post following Datuk Seri Rafizi Ramli’s resignation, Muhammad Kamil said the decision rests solely with Prime Minister Datuk Seri Anwar Ibrahim discretion.
“We leave it to the Prime Minister’s judgment and wisdom to decide who is best suited to shoulder the responsibility at this time,” he said.
