KUCHING: The business community has urged for greater clarity on the government’s proposed expansion of the Sales and Services Tax (SST).
“We need to know the exact scope of fee-based financial services that would be affected by the proposed SST expansion and whether the rate will be revised,” said Datuk Jonathan Chai, secretary-general of the Sarawak Business Federation (SBF).
Chai noted that any tax increase could negatively impact businesses, particularly small and medium enterprises (SMEs).
He hoped that the expansion would not be too broad or too drastic, to minimise its impact.
“At least, it’s reassuring that essential food items will be exempt from the tax, preventing a significant increase in the cost of living for the general public,” he told Sarawak Tribune.
The Prime Minister has previously stated that the government’s budget aims to protect the less fortunate and avoid imposing unnecessary burdens on them.
Chai pointed to the government’s move to implement targeted subsidies for RON 95 as evidence of this commitment.
“Hopefully, Sarawak will be exempted from such measures, like the diesel subsidy,” Chai added.
