KUALA LUMPUR: The expansion of the Sales and Service Tax (SST) scope is designed to minimise the cascading effect on goods prices by focusing on specific items rather than imposing a blanket increase, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He emphasised that daily necessities remain unaffected, ensuring public affordability.
Amir Hamzah highlighted the government’s careful approach, referencing the March 2023 SST rate adjustment from six to eight per cent, which had no significant inflationary impact.
“Malaysia’s inflation stood at 2.0 per cent last year, proving our measures are manageable,“ he said during the *Keluar Sekejap* podcast hosted by Khairy Jamaluddin and Shahril Hamdan.
The minister defended the targeted expansion, stating it allows the government to assist vulnerable groups effectively.
“Selective implementation ensures relief reaches the right segments,“ he said, citing the Sumbangan Asas Rahmah (SARA) programme’s expansion from 700,000 to 5.4 million recipients as proof of redistributive benefits.
On RON95 subsidy rationalisation, Amir Hamzah confirmed discussions are ongoing, with the Central Database Hub (PADU) likely to determine eligibility thresholds.
“A higher initial cut-off line is probable, with details to be finalised by Cabinet,“ he added, expecting implementation before year-end. – Bernama
