KUCHING: The Sales and Services Tax (SST) is not a new tax system implemented in the country as it was introduced and used before the Goods and Services Tax (GST), said Finance Minister Lim Guan Eng.
He added that SST was an old tax system and should not raise many problems despite the different scope of SST implemented this time around.
“There are more things exempted from SST compared to last time, and the threshold value has also been increased,” he said during a press conference before the SST talk programme at Pullman Hotel here on Wednesday.
He also said that the ministry together with the Royal Malaysian Customs Department (Customs) was still in the process of negotiation for exempting certain products or services from SST.
“Sometimes, when we receive an application for SST exemption, our ministry and the Customs Department need to do a thorough study because the implication is wider.
“If it only affects a product, it will not be a problem. But if there are other products affected, we need to do a thorough study as it will give off a chain effect on other products,” he said adding that he hoped the study will be completed by the end of this year.
He said for example, on prepaid cards, the ministry has decided to exempt prepaid cards from SST in order to lessen the burden of the people.
“If they pay RM10 for a prepaid card, then they will get that amount without any deduction,” he explained.
He added that SST was also exempted for motorcycles below 250CC but the accessories have been subjected to a reduced tax from 10 per cent SST to 5 per cent SST.
Meanwhile, Guan Eng revealed that the Customs Department has also appointed a special officer who can be referred to regarding SST.
“Before this, we have a list of Customs officers who can be referred to regarding SST, but there are problems such as different answers to one question from two different officers.
“Therefore, we have decided to appoint a special officer to talk on SST besides the director so that the public can get one consistent answer,” he stressed.
He added that after this programme here, he will attend the same programme on SST in Kuala Lumpur, Alor Setar and Penang.
“I believe that through these programmes, it will be a useful engagement with the public and especially the industry players so that we know what are their problems, suggestions and also opinions on SST. We are ready to listen to them,” he said.
Also present during the press conference were Deputy Minister of Domestic Trade and Consumer Affairs Chong Chieng Jen, State Secretary Tan Sri Datuk Amar Mohamad Morshidi Abdul Ghani, Deputy Director-General of Customs (Customs/GST) Dato’ Paddy Abdul Halim and Director of Customs Sarawak Datuk Sharifah Halimah Tuanku Taha.
