Najib and Guan Eng continue war of words over SST

PETALING JAYA: The pau or steamed buns restaurant caught in the middle of a war of words between Finance Minister Lim Guan Eng and former prime minister Datuk Seri Najib Tun Razak over the Sales and Service Tax (SST) is merely following the rules, said a source close to the management.

The popular eatery located in Tanjung Malim, Perak, imposed a 6% service tax in accordance with the SST as it had an annual turnover that exceeded the minimum threshold, said the source.

According to the Customs Department’s SST website, restaurants with a turnover of RM1.5mil per annum must charge a 6% service tax.

Najib in a Tweet on Sunday questioned why the sales tax was imposed on steamed buns which he bought at the restaurant.

He uploaded his receipt which showed a RM3.80 charge for SST.

Lim then slammed Najib’s remarks, pointing out that the former prime minister did not complain when the previous Barisan Nasional government implement- ed the Goods and Services Tax (GST).

Yesterday, Najib hit back at Lim, saying that the GST was better than the SST.

In a Facebook post, Najib asked why he was being charged the 6% tax since he was a consumer.

“Didn’t Guan Eng say a few times that the SST would only be imposed on manufacturers, and not consumers?

“I’m not a manufacturer, so why am I being charged the 6% tax?” Najib asked.

He questioned why the govern- ment had changed tax systems since Lim had reportedly said the 6% rate being charged was the same as the GST rate previously.

“If it is the same, why do we need to change to a different tax system seeing that when the GST has been abolished, the prices of goods have not come down?”

Najib also pointed out that he was charged a 6% service tax for his drinks.

“I drank ice lemon tea. According to the latest SST guide, the sales tax for ice lemon tea is 10% which means that when the shop buys ice lemon tea from the factory, the 10% tax should already have been included in the price,” he said.

He said this meant he paid a total of 16% in taxes, which was higher than the GST’s 6% rate.

Under the SST which came to force on Sept 1, the provision of services will be taxed at 6% while the sale of goods will incur a 10% tax.

The SST replaced the GST after the Sales Tax Bill 2018 and Service Tax Bill 2018 were passed in Parliament on Aug 20.