King gives assent for implementation of SST
KUALA LUMPUR: The implementation of the Sales and Services Tax (SST) has been approved by Yang di-Pertuan Agong Sultan Muhammad V, thus allowing the new tax system to take effect on Sept 1.
In expressing gratitude to the ruler, Finance Minister Lim Guan Eng said the implementation of SST was in line with the Pakatan Ha rap an government’ s manifesto as pledged in the 14 th General Election.
It was reported that SST would affect 70,000 businesses, as opposed to 420,000 under the nowrepealed Goods and Services Tax (GST).
The SST would see its rate set at 10 per cent for sales and six per cent for services.
“After the Sales Tax Bill 2018 and the Services Tax Bill 2018 were passed in the Dewan Rakyat on Aug 9 and by the Dewan Negara on Aug 20, the Yang di-Pertuan Agong, on Aug 24, has given his approval on the implementation of SST.
“This means that the SST can be enforced beginning Sept 1, to replace GST, which has been repealed.
“The Finance Ministry would like to express its gratitude to the Yang di-Pertuan Agong over his approval to implement SST, which is in-line with PH’s commitment in fulfilling its election manifesto,” Lim said yesterday.
He said it was hoped that the implementation of SST, to be gazetted before Aug 30, would ease the people’s cost of living as the government was expected to collect only RM21 billion, as opposed to RM44 billion under the GST.
He reminded business operators to adhere to regulations and register their businesses under the new tax system.
“This (registration) is to ensure that none of the operators would take advantage to raise prices (profiteering), and is a part of the government’s move to stem hikes in the prices of goods, which can burden the people.
“The Domestic Trade and Consumer Affairs Ministry will monitor the implementation (among business owner and operators) and will take action against profiteering activities.”