BNN
4 March 2024
Malaysia Raises SST to 8%: Government Commits to Better Stakeholder Communication
Malaysia responds to SST hike with improved stakeholder communication and launches support schemes for MSMEs and first-time homebuyers for economic stability.
Malaysia Raises SST to 8%: Government Commits to Better Stakeholder Communication
KUALA LUMPUR, March 4 – In response to the recent increase of the sales and service tax (SST) from 6% to 8%, Second Finance Minister Datuk Seri Amir Hamzah Azizan announced the Malaysian government's commitment to enhance its communication with stakeholders to prevent future confusion.
This statement was made during the launch of special government guarantee schemes aimed at supporting micro, small and medium enterprises (MSMEs) and first-time homebuyers.
Enhanced Government Revenue and Redistribution Efforts
Amir Hamzah explained that the SST hike is part of a broader strategy to boost government revenue, which will be redirected to support the lower end of society. He highlighted past initiatives such as improving school facilities and living conditions for government servants, emphasizing that such redistributions significantly benefit society. Moreover, to address potential profiteering from the tax increase, the Ministry of Domestic Trade and Cost of Living has pledged increased enforcement to prevent unjustified price hikes by businesses.
Future Tax Structure Considerations
When questioned about the possibility of adopting a more streamlined tax structure like the goods and services tax (GST), Amir Hamzah remarked that while GST remains under consideration, the current focus is on utilizing existing tools like the SST to raise necessary funds. He stressed the importance of time in deliberating over major tax regime changes and the government's current priority of maximizing revenue with available measures.
Support for MSMEs and Homebuyers
Alongside the tax adjustment, the government has initiated special schemes through Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Syarikat Jaminan Kredit Perumahan Bhd (SJKP) to support MSMEs and assist first-time homebuyers. These schemes are part of Budget 2024's objectives to facilitate economic growth and stability. Amir Hamzah provided an update on SJPP's role in offering guarantees to over 100,000 MSMEs, highlighting the improvement in non-performing loans and the scheme's sustainability.
This move to adjust the SST and the introduction of supportive schemes reflect the government's multifaceted approach to addressing economic challenges and ensuring societal welfare. As Malaysia navigates these changes, the emphasis on improved communication and stakeholder involvement will be crucial in achieving the desired outcomes without causing undue public concern or confusion.
(Web Source: https://bnnbreaking.com/finance-nav/malaysia-raises-sst-to-8-government-commits-to-better-stakeholder-communication)