LDP chides opposition for exploiting SST issue

TENOM: Liberal Democratic Party ( LDP) acting president Datuk Chin Su Phin has taken irresponsible opposition parties to task for exploiting the Sales and Services Tax (SST) issue.

He said it was incorrect for some opposition parties to claim that the reintroduction of SST would lead to price hikes.

He pointed out that the scope of SST, which had previously been imposed for about 40 years, has not expanded much as the tax came into effect on September 1 this year.

Moreover, Chin said the six per cent Service Tax imposed on restaurants was also the same rate as the Goods and Services Tax ( GST), with the 10 per cent service charge being another fee collected by eateries.

“Yet the opposition is exploiting the issue and claiming that the SST will cause prices to go up in many food and beverage establishments.”

He said the Sales Tax under SST was only levied on the manufacturer level, as compared to the multi-tier approach of the GST.

“In fact, the government is collecting a lot less tax revenue by replacing GST with SST,” Chin said when officiating at the joint conference of LDP Melalap, Liawan and Tambunan divisions here yesterday.

As such, he hoped that the people would not be misled by the inaccurate claims made by the opposition pertaining to SST.

On another note, Chin called on business to be ethical in their pricing following the implementation of SST.

“I have not seen a drop in prices in restaurants and retail during the three-month tax holidays when GST was made zero-rated.”

He said it would be unfair to consumers if businesses increase their prices of services and products when the SST came into effect.

“We hope the government will take stern action on unscrupulous businesses that raise their prices indiscriminately.”