Guan Eng: A fair revenue threshold for SST

KUALA LUMPUR: An annual revenue threshold for Sales and Service Tax (SST) that is reasonable for both businesses and the government would be set, said Finance Minister Lim Guan Eng.

“We would certainly receive a lot of suggestions (about the threshold). Many would ask for the limit to be set high, but we have to set a threshold that would be fair to all parties.

“We have to be fair to the government as well. If we set the threshold too high, we might as well not impose any tax,” he told reporters at the Shariah Investing Fair 2018 held at Kuala Lumpur Convention Centre yesterday.

He added however that the government is prepared to receive feedback from the public about the threshold.

It was previously reported that the Customs Department said the SST is only applicable to businesses earning RM500,000 and above annually.

The public is also welcome to give feedback on the proposed list of SST-exempted items, he added.

Recommendations by businesses can be given to the Customs Department via its website and enquiries can be made through its hotline, Lim added.

“This is because the SST (directly) affects businesses, not so much consumers or end-users,” he said, adding that the tax is imposed at the manufacturing stage.

On Jul 19, the Customs Department has proposed SST exemptions on a 292-page long list of goods.

The list had also included items such as aircraft, luxury ships, ferries, helicopters, spacecraft and snowboarding equipment.

Lim had reportedly said he wanted such big-ticket items to be taxed under the SST.