KUALA LUMPUR: The government has been urged to reconsider and postpone for the time being the proposal regarding the (sales and) service tax (SST).
According to Budget 2024, the government plans to increase the SST rate to 8.0 percent from 6.0 percent, not inclusive of services such as food and beverages and telecommunications.
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The government also plans to expand the scope of taxable services to include logistics, brokerage, underwriting and karaoke services.
Bagan Member of Parliament Lim Guan Eng said this move is feared to have an impact on the people.
“If we say logistics, it will have a big impact,“ he said when debating the Supply Bill 2024 in Dewan Rakyat today.
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He is also concerned that the introduction of new taxes amid economic challenges and world geopolitical turmoil will affect the country’s growth, particularly the capital gains tax for the disposal of unlisted shares by local companies based on net profit at a rate of 10 percent from March 1, 2024.
He said the announcement had raised concern that the tax would later be extended to all companies on Bursa Malaysia. – Bernama
Reference : https://www.thesundaily.my/local/reconsider-proposals-relating-to-sst-guan-eng-HC11641512