KUALA LUMPUR: The overall impact of the Sales and Service Tax (SST) implementation on households is estimated to be low and manageable, based on early Ministry of Finance (MOF) projections, said Deputy Finance Minister Lim Hui Ying.
Lim elaborated that this was due to various relief measures and exemptions introduced as mitigation steps to ensure the tax burden is fairly distributed and borne by those with the ability.
“It is still too early to assess the full impact of SST implementation on the public, given that the expanded scope of SST only began on July 1, 2025.
“However, based on the ministry’s initial projections, the impact on households is estimated to be low and manageable,” she told the Dewan Negara during a question-and-answer session today.
Lim was responding to Senator Datuk Ros Suryati Alang, who asked about the effects of the SST implementation on July 1, 2025, on the public and whether the SST strategy has helped the government cover its operational and development expenses without increasing loans or debt.
Lim said this approach aligned with the principles of social and fiscal justice and supported the MADANI economic aspirations that emphasised public welfare and national sustainability.
She said that with the expanded SST scope, the government expects to generate an additional RM5 billion in revenue this year.
“This additional revenue, combined with an optimal and prudent spending approach, has strengthened the country’s financial position, enabling the government to cover operational and development expenditures without the need to increase loans or incur high debt.
“The increased tax revenue also allows the government to continue providing subsidies on basic essentials through consumption subsidy allocations to the majority of the population, helping to ease the cost of living. This includes programs such as the Sumbangan Asas Rahmah (SARA) and Sumbangan Tunai Rahmah (STR),” she added. - Bernama
