Kota Kinabalu: Warisan Vice President Datuk Junz Wong urged the Federal Government to reconsider the decision to expand the Sales and Service Tax (SST) regime starting July 1, reminding that the move will impose unnecessary hardship on businesses and consumers, especially in Sabah.
In a statement, he questioned the rationale behind implementing such a far-reaching policy with less than three weeks’ notice, calling it “abrupt and confusing.”
“The government must explain why this drastic SST expansion is being rushed through. What is the urgency? Why weren’t businesses given more time to adapt? Many don’t even know what is taxed at 5 per cent, 10 per cent, or exempted,” said Wong.
“And we all know what happens next whereas ruthless and clueless merchants will simply apply the highest tax rate across their product range, passing the burden to consumers and families.”
He stressed that Sabahans do not support the expansion of the SST regime and called for it to be reviewed immediately.
Wong also questioned the fiscal position of the Madani Government.
“Is our government so cash-strapped that it now needs to extract more money from the people and SMEs?” he asked.
“Malaysians are suffering for years of covid post effects, yet now rakyat and businesses must carry the burden.”
Wong further warned that Malaysia risks losing its business-friendly reputation in the region.
“This SST regime, combined with already burdensome regulations and tax compliance, is making Malaysia an expensive country to do business in,” he said.
“How do we expect to remain competitive in Asean when others are streamlining their systems and lowering costs while we keep adding more layers of taxation and red tape?”
He warned that the expansion of SST may discourage foreign direct investments (FDIs) and even lead existing ones to exit Malaysia.
