KUALA LUMPUR: The implementation of Sales and Services Tax (SST) has been approved by the Yang di-Pertuan Agong Sultan Muhammad V, allowing the new tax system to take place on 1 September.
In gratitude to the ruler, the Minister of Finance, Lim Guan Eng, said that the implementation of SST was in line with the manifesto of Pakatan Harapan (PH) as promised in the 14th general election.
Reportedly, SST would affect 70,000 companies, as opposed to 420,000 under the now canceled Goods and Services Tax (GST).
The SST will set the rate at 10 percent for sales and 6 percent for services.
"After the (Sales Tax Bill 2018 and the Services Tax Bill 2018) was adopted in the Dewan Rakyat on 9 August and by the Dewan Negara on 20 August, the Yang di-Pertuan Agong gave its approval on 24 August to the implementation of SST.
"This means that SST can be enforced from September 1 to replace GST that has been revoked.
"The Treasury Department would like to express its gratitude to the Yang di-Pertuan Agong about its approval to implement SST, which is in line with PH's commitment to fulfill its election manifesto," Lim said in a statement today.
Lim said it was hoped that the implementation of SST, which would be published before August 30, would reduce the cost of living for the people, as the government is expected to collect only RM21 billion, as opposed to RM44 billion under the GST.
He reminded that operators must comply with regulations and register their companies under the new tax system.
"This (registration) is to ensure that none of the operators would benefit (for profit-seeking) and part of the government's move to stop the price increases of goods that could burden the population.
"The Ministry of Internal Trade and Consumer Affairs will monitor implementation (under company owner and operators) and take action against profit-making activities." © New Straits Times Press (M) Bhd