Parliament passed five Bills to abolish the Goods and Services Tax (GST) making way for the implementation of the Sales and Service Tax (SST)
On 20th August 2018, five Bills were approved to abolish the Goods and Services Tax (GST). However, the implementation of the GST has been replaced by taxation in form of the Sales and Services Tax (SST) which is in line with the aspirations of the government.
The Sales Tax Bill, Service Tax Bill, Goods and Services Tax (Repeal) Bill, Customs (Amendment) Bill and Free Zones (Amendment) Bill were passed without much objection from Opposition senators.
Local news also reported that while tabling the Bills, Finance Minister Lim Guan Eng said that the government hopes that more people will be able to enjoy the RM17bil which will be returned to them this year, and an additional RM23bil next year, following the abolishing of GST.
He added that prices of goods would be monitored when the SST is implemented although the increase will not be as high as the GST.
“At the same time, the federal government is studying structural problems in the domestic economy such as the power of monopoly which is burdening consumers,” he said.
He called on senators to support the bills to ensure that the government’s current balance surplus is maintained.
“If the GST is not abolished and SST is not passed, it would mean that the estimated RM4bil in collection would be lost and the current balance would be in a deficit,” he said, adding that this would affect the nation’s economic credibility and credit rating.
The Dewan Rakyat passed the Sales Tax Bill 2018 on 14th of August and the Service Tax Bill 2018 on 15th August 2018.
Despite fears that the Opposition’s senators would block the Bills, they sailed through the Dewan Negara after seven hours of debates.
The new government will now have to bear the responsibility of the impact of the SST on the people.