- The government is being urged to consider reintroducing a simplified GST.
- Concerns exist that expanding SST could burden businesses and consumers, especially in Sabah.
- SAPA suggests a flat-rate GST at 3 percent for a fairer and more efficient taxation model.
- A modern GST system with basic exemptions is believed to better serve Malaysia’s fiscal goals.
- SST expansion could disproportionately impact Sabah’s economy.
- Inclusion of construction services and commercial property leases under SST may increase costs.
- Infrastructure gaps and higher logistics costs already affect businesses in Sabah.
- SMEs risk bearing the brunt of SST changes, with costs likely passed to tenants and consumers.
- Positive elements in SST include exemptions for residential rentals and basic goods.
- GST offers advantages like input tax credits and better audit trails.
- A simplified GST could be tailored to Malaysia’s needs without affecting essential goods.
- SAPA raised concerns about mandatory e-invoicing and technical capacity in Sabah.
- A reintroduced GST would incorporate invoice tracking, making e-invoicing redundant.
- Policymakers are urged to adopt an inclusive approach in tax reform discussions.
- SAPA is ready to work with the government to represent Sabah’s economic circumstances.
Source: thestar.com.my
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
