The president of the Malaysian Chinese Association (MCA), Datuk Seri Wee Ka Siong, has called on the government to reconsider its decision to include water and electricity in the upcoming 2 percentile hike in the Sales and Service Tax (SST). Ka Siong said that exempting these essential utilities from the SST increase, similar to the exemptions granted for food and beverages (F&B), parking, and telecommunications charges, is crucial to alleviate financial strain on consumers.
Ka Siong expressed concerns that subjecting water and electricity bills to the SST hike would not only burden consumers but also lead to higher production costs for manufacturers and increased rental expenses for shops, thereby creating a cascading effect on the economy.
He stressed the importance of maintaining SST rates for water and electricity at their current levels to prevent additional financial pressure on households and businesses.
Highlighting the role of MCA in providing checks and balances to the government, he emphasised the importance of elected representatives advocating for the interests of the people, a local media reported.
He praised recent government decisions to exempt traditional and complementary medicine (TCM) from SST, citing MCA’s opposition to the taxation of alternative health treatments.
Ka Siong also suggested that the government consider reinstating policies previously implemented by the Barisan Nasional administration, such as the Goods and Services Tax (GST), which he argued had benefited the public during its implementation.
He proposed revisiting GST with improvements to its input system and a reduction in the tax rate, emphasizing the potential benefits for the people and the country.
Additionally, he called for a comprehensive and precise data collection process before implementing policies that may burden the public, such as the rationalisation of the RON95 subsidy.
He urged the government to listen to the concerns of the people regarding data security and accuracy, emphasizing the importance of implementing policies based on scientific studies and phased approaches.
Ka Siong also emphasised the need for the government to prioritize policies that alleviate financial burdens on the people and promote economic stability, urging careful consideration and consultation with stakeholders before implementing any changes.
