Lim Guan Eng calls the government to review SST and other tax hike

DAP chairman Lim Guan Eng (picture) calls the government to reconsider reviewing the new rate for the Sales and Service Tax (SST) which is burdensome to traders and the people, 

Lim (PH-Bagan) said that the new rates and any other new taxes could be reintroduced when the economic situation recovers.

“I request that all new taxes including the SST and the luxury tax be reviewed. If it burdens traders and the people, it can be delayed due to the uncertain economic growth situation.

“We also know that the economic situation will recover at the end of this year and this includes the value of the national currency which is expected to recover in the second half of this year.

“So, it is hoped that there will be a reconsideration and review so that the new tax, the SST rate which has now been increased to eight percent will be reconsidered,” he said during the debate on King’s Speech in Parliament today.

The service tax rate was raised from 6% to 8% on March 1, with revised rates applied to selected services including karaoke centres.

Meanwhile, the 6% rate has been retained for food and beverages, telecommunications, and parking services.

Previously, the government also introduced a 10% Low Value Goods Tax (LVG) for online sales (e-commerce), an 8% Digital Services Tax (DST), as well as a Capital Gains Tax (CGT) at 10%.

The government will also introduce a High Value Goods Tax (HVGT) from May 1 as high as 10%. — TMR