SST expansion lacks planning, burdens youth and middle-income groups

Sinar Daily

3 days ago

Muda slams Federal Government over SST expansion, citing harm to B40 and M40 youth
Amira also called on the government to provide a clear and detailed explanation of its long-term plans for SST. Photo source: Amira Aisya Abd Aziz
SHAH ALAM - Muda acting president, Amira Aisya Abdul Aziz has slammed the Federal Government's decision to introduce and expand the Sales and Services Tax (SST), claiming it adversely affects youth, particularly those within the B40 and M40 income groups.
She questioned the effectiveness of the policy in addressing the needs of these income groups, arguing that it increases the financial burden on everyday citizens rather than targeting the ultra-wealthy. Amira also questioned the government's definition of ultra-rich, suggesting that the current SST disproportionately affects ordinary Malaysians. Photo source: Amira Aisya Abd Aziz
"The government must realise that this increase in SST reflects a lack of proper planning and research.
"Prime Minister Datuk Seri Anwar Ibrahim's recent announcement, exempting items like apples and oranges, raises the question: was the original implementation executed without proper research into what should be taxed and what shouldn't?" she stated during an interview with Sinar Daily at the Karangkraf headquarters.
She labelled the move as unfair and hypocritical, highlighting the contradiction between the government's statements about championing the needs of the B40 and M40 groups and the policies it implements.
While Muda is not against taxation, Amira stated that the burden must be equitably distributed.
'We recognise taxes are necessary to fuel the economy, but they must be targetted.
"For example, capital gains tax and inheritance tax are mechanisms that should be explored.
"These taxes would ensure that the ultra-wealthy pay their fair share,' she argued.
She also questioned the government's definition of ultra-rich, suggesting that the current SST disproportionately affects ordinary Malaysians.
'If this tax is truly aimed at the ultra-rich, why are daily necessities...items consumed by gig workers, young people and average families being taxed, while investment goods like gold remain untaxed?" she queried.
Amira further highlighted the growing struggles faced by young people in Malaysia, especially in urban areas.
'Many young individuals in places like Kuala Lumpur and Johor Bahru are already struggling to make ends meet. The introduction of SST will only worsen their challenges,' she said.
Citing research, she emphasised that the youth are disproportionately affected by rising costs and stagnant wages.
'Policies like this do not provide relief or solutions to their problems. The government needs to acknowledge this and act accordingly,' she added.
She also called on the government to provide a clear and detailed explanation of its long-term plans for SST.
'The public deserves transparency on how SST revenues will be utilised and what safeguards will be put in place to protect the B40 and M40 groups,' Amira added.