Sabah Accountants Advocate for Simplified 3% GST to Ease Tax Burden and Boost Economy

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.

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.