DAIM: SST RATE TO BE FINALISED IN 2-3 MONTHS
Sales and Services Tax will take months to finalise and require legislation to be passed in Parliament, says Daim
MALAYSIANS may enjoy a tax holiday for purchases of goods and services before the implementation of the Sales and Services Tax (SST), which is expected to take several months.
The Pakatan Harapan (PH) government had announced the zero-rating of the Goods and Services Tax (GST) beginning June 1, as part of its 14th General Election (GE14) promises to replace the GST with SST.
However, Tun Daim Zainuddin, who chairs a Council of Elders advising the government on economic and fiscal policies, said the SST rate had not been finalised and might take another two to three months.
Reintroducing the SST will require legislation to be passed in Parliament.
Asked about the possibility of a negative credit rating following the zero-rated GST from June 1, Daim said: “I am not very concerned about credit ratings. We were downgraded before, in 1998.”
He also pointed out how credit rating agencies had previously given high ratings for subprime securities in the United States before the 2008 financial crisis.
Moody’s Investors Service yesterday reiterated its view that the Pakatan Harapan government’s plans to abolish GST would be credit negative to the country if implemented without adjusting measures.
Over the past six days, the council has had over 40 meetings with various government-linked companies, government-linked investment companies, senior government officials and trade unions.
Daim said next week, the council would meet with companies owned by Ministry of Finance Incorporated, including Petroliam Nasional Bhd and the Inland Revenue Board.
The meetings are aimed to give the council a better picture of the state of the nation’s economy, finances and key projects.
It will then present the findings and recommendations to Prime Minister Tun Dr Mahathir Mohamad and his cabinet.