[UPDATED] Govt open to fact-based SST criticism, says Anwar

New Straits Times

9 hours ago

PUTRAJAYA: The government is open to criticisms over the expansion of the Sales and Service Tax (SST), but such views must be based on facts, said Prime Minister Datuk Seri Anwar Ibrahim.
Speaking at the Prime Minister's Department monthly assembly today, Anwar said the Cabinet's decision to expand the SST was made carefully to ensure it does not burden the majority of the people.
He also said student groups had claimed that electricity tariffs had increased under the expansion of the tax structure, but reiterated that tariff adjustments only affect the top 10 to 15 per cent of users.
"I do not quite understand. Is it true that students are affected? If universities are imposing electricity charges on students, and if that is accurate, then we must look into it.
"But from what I understand, public universities are exempted.
"Issues like this are sometimes widely circulated, and freedom has turned into a space for slander and insults.
"That is why I encourage everyone, especially our younger generation, to share accurate facts. I have no issue with people criticising or voicing concerns," he said.
Present were both Deputy Prime Ministers, Datuk Seri Dr Ahmad Zahid Hamidi and Datuk Seri Fadillah Yusof, as well as Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.
The revised SST rates outlined under the 2025 Budget would come into effect on July 1.
The Finance Ministry said the measure aims to strengthen the country's fiscal position by increasing revenue and broadening the tax base.
Under the revised structure, selected non-essential and luxury goods will be taxed at rates between 5 and 10 per cent.
While staple items such as sardines, tuna and mackerel (kembung) remain exempt from the SST, premium imported seafood like salmon, cod and king crab will incur a 5 per cent tax.
Meanwhile, local fruits are exempt from the sales tax, with only imported fruits incurring the 5 per cent rate.
Commenting further, Anwar, who is Finance Minister, said imposing SST on certain imported fruits was part of a targeted effort to promote local produce.
"When we introduced it on imported fruits, it was because we believed that it was time. We have fertile land, where anything can be grown, even in our own backyard.
"So we started with a cautious approach, introducing a small tariff or tax on imported fruits. Zahid and other colleagues mentioned that apples, oranges, and dates should be excluded.
"So I said, let's check with the ministry and even though it is rare for the ministry to revise a decision shortly after it is made, we can do that.
"For instance, with dates, we can adjust it ahead of next year's Ramadan, but to say that this (expansion of SST) is burdening the people, we must examine that carefully."