Set SST at low rate, urges Bumiputera retailers organisation

KUALA LUMPUR: The Sales and Services Tax ( SST) should be reintroduced at a low rate in order to help compliance among businesses, said Bumiputera Retailers Organisation ( BRO) vice president Datuk Wira Ameer Ali Mydin.

Speaking to reporters after meeting the Council of Eminent Persons here, yesterday, he suggested a rate of between three and four per cent, lower than the 10 per cent announced by the government.

“SST rate should not be so high because the old regime of 10 per cent, and six per cent, create leakages and increase the prices.

“Business man being business man, if the rate is very high, they tend to not pay that kind of rates,” he said.

Ameer Ali, who is also Mydin Mohamed Holdings Bhd Managing Director, said with a better compliance, the government would be able to collect the revenue that it wants in the long run.

Previously, the Finance Minister Lim Guan Eng announced that the current Goods and Services Tax ( GST) would be replaced with SST effective Sept 1, 2018.

Asked on the millions of investment that Mydin had spent for its GST- ready Statutory Accounting System (SAP), he said “what have gone, let it be gone”.

Mydin had invested a total of RM20 million to change to the SAP system.

“We hope that with SST, they will use a hybrid system with current mechanisms, so we don’t have to change the system because it ( SAP) is a very good system,” he said.

Commenting on the government’s pledge to raise minimum wage to RM1,500 per month as in its manifesto, Ameer Ali said from the retail perspective, the association did not have any objection.

“Retailers depend on disposable income, if higher, of course it will help them but we should never shock the industry.

“The increase has to be there, because no doubt wages in Malaysia are very low, so we can increase it properly,” he said.

Ameer Ali said the quantum of increase must be slightly higher than the inflation, otherwise there were no real disposable income. — Bernama