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Shafie: SST needs further explanation
Published on: Thursday, July 19, 2018

CHIEF Minister Datuk Seri Mohd Shafie Apdal says the State Government has no qualms on the Sales and Services Tax (SST) but feels there should be further explanation to ensure the implementers are prepared.

Prime Minister Tun Dr Mahathir Mohamad had recently announced the reintroduction of the SST on Sept 1.

The SST, which will make up for the shortfall in government revenue, replaces the six per cent Goods and Services Tax (GST) which became zero rated since June 1.

"The SST is quite clear…I think for us as long as GST is abolished, as we have agreed upon," said.

He said the SST is not a regressive form of taxation that will burden the rakyat, adding "but we need further explanation on the SST so that the implementers will be prepared."


"The SST had been used before and was replaced with the GST.

"For us it is not an issue, but there must be monitoring to ensure nobody takes advantage of it," he said.

Finance Minister Lim Guan Eng recently announced the provision of services to be taxed at six per cent under the reintroduced SST, while the sales of goods will incur a 10 per cent.

He was quoted as saying that the SST Bill is expected to be passed in August during the current parliamentary sitting and would be implemented in September.

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