Senate passes Sales Tax Bill

By BERNAMA / Pic By TMR

The list of over 5,000 items exempted from the Sales and Services Tax (SST) may change depending on the situation, said Finance Minister Lim Guan Eng (picture).

However, he said the government would work with various parties to ensure that the people would benefit accordingly.

“The amount of goods may increase and also decrease. Generally we can expect that it will not decrease, but I do not want to guarantee on something that I have yet to get the details.

“This is a government that does not want to make empty promises,” he said when winding up debates on the Sales Tax Bill 2018 in the Dewan Negara.

The bill was later approved by a majority vote. Lim said there is no guarantee that the prices of goods would drop after the implementation of SST on Sept 1 due to several factors including oil prices which leads to the increase in cost of goods.

“I never said SST would make the prices of goods to come down. I said if the prices of the goods went up, the impact would be lighter than the Goods and Services Tax (GST), because tax collection is only RM21 billion compared to RM44 billion for GST,” he said.

Lim said a liberal approach would be used in implementing SST, whereby traders are allowed to declare the goods and services exempted from the tax. — Bernama