BY LEONG Z-KEEN
KUCHING: Sarawakians in general have expressed mixed reactions towards the new Sales and Service Tax (SST) rate of eight per cent.
The government’s decision to increase the SST from 6 per cent to 8 per which took effect from March 1 is said to generate a total revenue of around RM3 billion to develop the country’s public infrastructure and improve the welfare assistance to the poor.
The implementation, however, has drawn social activists to question if the tax rate was necessary in resolving the nation’s already weakening currency.
Sarawak Tribune managed to gain some insights from the public regarding the matter.
RONALSON MANDAU, 37, Retail Associate Advisor
“I feel burdened by the implementation because everything is getting expensive. For me, I would rather have the government reduce the SST rate, because we have other commitments which requires money, too..”
CHANG KHENG GUANG, 50, Fruit seller
“I feel that we do not have much of a choice because the government is trying to build up its tax revenue.
“I would say for the less fortunate, the government need to consider their situation and assist them. But in the long run, we need to try and do some kind of business to uplift our financial hardship.”
ARMAN PARMAN, 51, Water Pump Attendant
“For me, I prefer the government not to raise but reduce the current SST rate because we need to buy necessities almost everyday.
“Furthermore, I do not think by giving more money to help the needy can solve their financial burden because ultimately, the money still circulates back to the government. “ It would be better for the people to find a source of income and not place too much hope on the government to always help.”
KURT FIZAL NAINA MOHAMED, 18, promoter
“I would say the hike in the SST rate has placed a heavier burden on the people since it causes everything to increase in price.
“I feel it would be fairer if the government gives incentives to those from the targeted B40 and M40 categories, hence not to burden the general public on the SST new rate”.
RICHELL BRYAN DILLAH, 32, security assistant
“The current Sarawak minimum wage of RM1,500 is already irrelevant during this time, and the increased SST rate adds another burden to the public. It may seem like a small figure for the tax to be increased by two per cent, but this actually causes problems for those earning less than RM2,000 a month.
“Rather than raising the nation’s revenue to give out incentives, it would be better if the government use that money efficiently like reducing inflation, revise the tax rates, or other alternatives where changes can be seen clearly in the long run.
“I am not saying I reject the incentives, but it serves us better if the government can find better ways of handling the allocated money than constantly handing out cash incentives.”
AUDREY RUDEN, 54, Housewife
“Well, the sudden price hike surprised me since everything is already that expensive. My family’s current situation is still fine as we have lesser family members living in the house.
“Families need money to pay for not just daily necessities, but also their children’s school items like textbooks, registration fees, uniforms, stationery and many more. Ultimately, it really depends on the family’s circumstance but for the less fortunate families, they desperately need the government to support them especially if the kids are still in school.”
