Expanded SST requires careful consideration, says ACCCIM
PETALING JAYA: There is a need for careful consideration of the timing and sequencing of measures regarding the expanded sales and services tax (SST), says the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).
It added that this is particularly relevant for mid-sized small and medium enterprises (SMEs), as increased business costs can lead to higher consumer inflation.
ACCCIM president Datuk Ng Yih Pyng noted that the government is cautious in identifying areas for rate increases, aiming to minimise negative effects on the public and businesses.
"However, the increased costs could dampen discretionary consumer spending due to higher prices of non-essential goods and a broader range of taxed services," said Ng in a statement on Wednesday (June 11).
"The service tax on rental and leasing would raise operating costs for many businesses, given a low exemption threshold for MSMEs with annual sales below RM500,000.
"We would like to appeal to the government to consider deferring the implementation of the expanded SST to a later date when macroeconomic conditions are more certain.
"We agree with the concerns raised by business groups in the construction, services, and manufacturing sectors over the timing of the SST expansion, increased costs, lack of clarity, and insufficient time for preparation."
Ng then said that the government should actively engage with all stakeholders, considering their interests to ensure clear and smooth implementation.
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