KUCHING: The Malaysian government has announced plans to implement the Sales and Services Tax (SST) more progressively, aiming to increase revenue and expand the tax base without placing undue strain on the public.
Essential food items will remain exempt from the Sales Tax to protect the daily cost of living.
However, non-essential premium goods, such as imported items like salmon and avocado, will now be subject to the tax.
This move seeks to balance boosting national income and ensuring the tax burden is fairly borne.
The New Sarawak Tribune asked ordinary folk, particularly those in the food business, whether they feel this change is fair and whether it will impact their spending habits.
Haryantie, 34, Satay Seller
As a consumer reliant on basic food items, I believe this initiative is fair as it helps reduce costs for the public. Exempting essential food from the sales tax ensures that necessities remain affordable while taxing imported premium goods like salmon and avocado, which targets those who can afford non-essentials.
As for small businesses, not taxing basic raw materials is beneficial, helping them maintain stable costs.
Overall, it seems like a balanced approach — boosting government revenue without burdening low-income groups. Focusing on luxury items ensures fairness while protecting those who rely on everyday essentials.
Muhibbah Ahmad, 39, Restaurant Owner
As a food business owner and a consumer, I believe imposing the Sales and Services Tax (SST) will significantly impact our daily lives.
For businesses like mine, it could lead to increased costs that may ultimately be passed on to consumers.
Additionally, it disrupts daily expenses and complicates the search for funds to purchase essential goods, particularly in this unstable economic climate. The added financial strain could make it even more challenging for individuals and families to manage their budgets effectively.
Overall, the potential consequences of SST could ripple through our communities, affecting everyone involved.
Aina Aman Maseli, 28, Restaurant Worker
Eliminating the Sales and Services Tax (SST) would be more beneficial, reducing the financial burden on consumers. This means that food products could become more affordable for everyone.
In fact, rather than implementing SST, a Goods and Services Tax (GST) might be a better option for consumers. With GST, individuals could receive annual returns, providing some financial relief at the end of the year.
Ultimately, a more consumer-friendly tax system could help improve the overall economic situation for many families.
Zainal Bojet, 36, Restaurant Owner
Since the SST is only applied to premium and imported goods, this tax will not significantly affect me as a restaurant owner who primarily uses local ingredients.
Most of my supplies come from local sources, and I only use a small portion of imported items, which can often be substituted with local alternatives.
This means that my operational expenses will mainly focus on sourcing local ingredients. By prioritising local products, I can stabilise my costs and support the local economy, which is a win-win situation for my business and the community.
