Bagan Member of Parliament Lim Guan Eng has called on the government to reconsider raising the Sales and Service Tax from 6% this year to 8% in 2024 as it would impact businesses and the public due to the pass-on effect.
The former finance minister also said implementing a tax increase during these economic challenging times and uncertain geopolitical situations can impact the country’s growth.
Prime Minister Datuk Seri Anwar Ibrahim when tabling the 2024 budget had mentioned that the SST will be increased to 8% effective January 1.
However, Tan Eng Yew of Deloitte feels this may increase the cost of businesses and impact prices down the supply chain. Adding, he is concerned that increasing the service tax rate and expanding the scope may increase the cost to businesses and impact prices down the supply chain. Thus, we anticipate the Government will adopt further indirect tax reforms to increase compliance and widen the tax base. ”
