Key messages
SST 2.0 the comeback kid
- SST will be reintroduced on 1 September 2018 to replace GST
- Proposed sales tax (10%, 5% and a specific rate for petroleum) and 6% for service tax
- Taxable threshold set at annual revenue of RM500,000 (except for eateries and restaurants at RM1 million)
Refined version of SST in terms of scope and coverage
- Single-stage tax is levied on manufacturers and importers
- Narrower compared to GST though slightly wider than old SST
- Mixed reactions for consumers and businesses
- Shortfall of budget revenue collection of RM23 billion
Smooth transition and implementation of SST is the key
- Continuous stakeholders’ consultations on the technical and compliance aspects of SST during the transitional period
- Dissemination of price information and enhance consumer awareness
- Step up price surveillance and enforcement of unreasonable price increases
