- The government supports continuing the Sales and Service Tax (SST) for revenue collection
- SST is familiar to the industry, traders, and the public
- The Ministry of Finance believes SST can be improved for more revenue and quicker fiscal impact
- SST has been in use for over 40 years
- Reintroducing the Goods and Services Tax (GST) would require up to two years of preparation
- SST is projected to generate an additional RM10 billion annually from 2026 with an expanded scope
- Both GST and SST have their own advantages and disadvantages
- GST involves multiple stages with an input tax credit mechanism
- SST involves a single stage without an input tax credit but offers certain exemptions for targeted implementation
Source: bernamabiz.com
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.
