MP: finance ministry should provide list of goods exempted from SST for B40

09-Aug-2018 Intellasia | Malay Mail | 6:02 AM Print This Post

The finance ministry should provide a detailed explanation on the list of goods frequently used by B40 families which will be exempted from the Sales and Services Tax (SST) said Subang MP Wong Chen.

He said if such a list is not readily available, then it would be appropriate to expedite a special report on the impact of the SST on the B40 category.

“The devil is in the details, and I also want to ask how long a grace period the government will give to traders so that they can properly comply with the new SST reporting system,” Wong said during the SST debate at the Dewan Rakyat.

Regarding enforcement, he said he hopes there is a yardstick of sorts which will prevent manufacturers or service providers from under-declaring their profits and deceive the rakyat when it comes to paying the SST.

“Likewise the Dewan has to diligently monitor the SST issue, with quarterly reports on its implementation so that all parliamentarians can see within a one-year period if the tax is implemented well or is to the detriment of the people,” Wong said.

Throughout his defense of the SST system, several points were highlighted which he felt should be considered in order to make it work as efficiently as possible.

“Since the Goods and Services Tax collected up to RM43 billion, the government will lose as much as RM20 billion a year once the SST is implemented,

“This means bearing a RM1.66 billion deficit every month. However it is possible if the ministries were to engage in an austerity drive and the government takes a firm stance with political will against corruption and leakages,” Wong said.

With ministries cutting costs and practicing more transparent procurement policies with open tenders, he said administrative costs would fall as a result.

“Ministerial delegations should be halved, and protocols reduce. Perhaps even avoid staying at more costly accomodations when travelling,” Wong said.

On the financial impact of SST’s implementation for Malaysia, he said the government’s yearly loss will result in the people saving the RM20 billion which they can use to boost the economy via consumption.

“The RM20 billion not paid for SST will end up returning to the market as people spend, which leads to our economy improving and becoming stronger.

“As such this leads to easier and happier lives for the people, which is the primary objective of the economy,” Wong said.


Category: Malaysia

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