The Ministry of Finance has confirmed that the Sales and Services Tax (SST) will be reintroduced
After announcing that the Goods and Services Tax (GST) will be scrapped to zero percent rating yesterday (16 May) beginning 1 June to the joy of most Malaysians, the government has started what they call a fiscal reform initiative
, which basically means an initiative to change and save our country's revenue.
The ministry said in a statement
today that one of the methods is to implement the SST again to cushion the shortfall.
There will also be specific revenue and expenditure measures taken, which will be announced soon.
The government will begin to reduce spending with rationalisation, efficiency measures and cutting down on wastage, as reported by Bernama
Besides that, since oil prices are now higher than the USD52 (RM206) per barrel that was estimated in Budget 2018, this will act as buffers for the immediate future.
To keep you up to speed, the SST is a single stage of consumption tax
where businesses cannot recover the tax paid on their purchases, which means businesses would have to bear the tax as cost.
Unlike the GST which is a consumer tax imposed on every level of production and distribution in the supply chain, from manufacturer to distributor to retailer.
That's why (almost) everything naik harga
So in theory, we will start to see price reduction in various areas come 1 June. Fingers crossed!