Kota Kinabalu: The Sabah Association of Professional Accountants (Sapa) understands the government’s ongoing efforts to broaden Malaysia’s tax base and increase revenue collection with some reservations.
“In light of the recently announced Sales and Services Tax (SST) expansion effective July 1, 2025, Sapa believes there is urgent need to consider reintroducing a simplified Goods and Services Tax (GST) as a longer-term solution to achieve efficiency, fairness, and economic sustainability,” said its President Datuk Tan Kok Liang.
“These targeted exemptions demonstrate the government’s intention to balance revenue needs with social protection, and Sapa supports such thoughtful measures,” he said.
On SST concern on the impact on Sabah’s economy, Tan stressed that, “However, SAPA remains concerned that the broader inclusion of construction services and commercial property leases under SST will have disproportionate effects on Sabah, where the business environment is already challenged by higher logistics costs, underdeveloped infrastructure, and geographical fragmentation.”
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