Report: Expanded SST likely to cause price hike for paper-related products including stationery
KUCHING (July 4): All paper-related products including stationery are likely to see a price hike following the expanded Sales and Service Tax (SST) from this month.
Based on the government's gazette, the scope of the expanded SST includes wood pulp raw materials, various types of paper stationery, printed materials, stamps, and postcards, Oriental Daily reported.
Among the detailed list of goods subject to the expanded SST are various types of pulp used to produce paper, such as mechanical pulp, chemical pulp, and recycled pulp.
This would mean various types of paper and stationery products come under the expanded SST list, including newsprint, notepads, exercise books, account books, folders, receipt books, diaries, and other common stationery.
The selling prices for these products would likely be reviewed due to the increasing costs.
Additionally, printed products including books, brochures, maps, architectural and engineering drawings, cheques and stock certificates, postcards and greeting cards also fall under the scope of this new taxation.
Persatuan Pertubuhan Penjual Alatulis dan Buku Malaysia (PPPABM) president Tan Chong Ong told Oriental Daily many businesses have received notification letters from suppliers on the potential price hike of the mentioned products.
According to him, paper-related products may see a deeper impact given that paper is the raw material for many supplies and its cost increase involves more aspects, compared to stationery products.
He said the entire industry is more concerned about the costs for paper-related products since they do not see any major impact for stationery products, for the time being.
'The main issue now is paper,' he pointed out.
Tan said the federation is in the process of gathering information and feedback from various relevant associations prior to having a meeting with the government.
He said they will negotiate with relevant departments for a win-win solution.
The government can listen to what enterprises have to say and, together, develop a result that benefits both parties, he said.
'If businesses cannot sustain and subsequently withdraw from the industry, the government risks reducing tax revenue, which may hurt the country's coffers,' he added.
The expanded SST took effect on July 1, with certain goods being taxed between 5 and 10 per cent while the prices of daily essential food such as chicken as well as local vegetables and fruits will remain unchanged. expanded SST lead stationery
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysiakini
19 minutes ago
- Malaysiakini
SST revision does not justify hotel rate hikes, MOF says
The Finance Ministry indicated that the sales and service tax (SST) does not warrant the hotel room rate increases asserted by some hotel associations. The ministry clarified that the SST revisions effective July 1 do not include any change in the service tax applied to hotel accommodation or food and beverages (F&B) served at hotels.
Sinar Daily
an hour ago
- Sinar Daily
SST revision does not justify hotel rate hikes
Hotels claim that they would need to raise room prices by 10 to 15 per cent following the revised tax structure. 04 Jul 2025 05:32pm The ministry clarified that the SST revisions effective July 1 do not include any change in the service tax applied to hotel accommodation or food and beverages (F&B) served at hotels. Photo for illustrative purposes only - Canva KUALA LUMPUR - The Finance Ministry indicated that the Sales and Service Tax (SST) does not warrant the hotel room rate increases asserted by some hotel associations. The ministry clarified that the SST revisions effective July 1 do not include any change in the service tax applied to hotel accommodation or food and beverages (F&B) served at hotels. "The SST revisions do not affect basic daily goods but may affect hotels indirectly through the expansion of service tax to cover rental on commercial properties and also sales tax on selected food items such as premium seafood and imported fruits. "However, these indirect impacts are unlikely to translate to a 10 per cent to 15 per cent increase in costs faced by hotels,' MoF told Bernama when asked about a possible hike in hotel rates due to the extended SST. The ministry clarified that the SST revisions effective July 1 do not include any change in the service tax applied to hotel accommodation or food and beverages (F&B) served at hotels. The ministry was responding to claims by hotels that they would need to raise room prices by 10 to 15 per cent following the revised tax structure. The MoF added that if hotels proceed to raise rates on the pretext of the SST, the government, through the Ministry of Domestic Trade and Cost of Living (KPDN), will examine the matter to prevent unreasonable price increases. "If there are hotels that do raise rates by 15 per cent on the pretext of SST, the government, through KPDN, will review the impact of SST on these hotels to ensure there is no element of profiteering,' it said. - BERNAMA More Like This
Malay Mail
an hour ago
- Malay Mail
Finance ministry says SST revisions don't necessitate hotel price hikes
KUALA LUMPUR, July 4 — The Ministry of Finance (MoF) indicated that the Sales and Service Tax (SST) does not warrant the hotel room rate increases asserted by some hotel associations. The ministry clarified that the SST revisions effective July 1 do not include any change in the service tax applied to hotel accommodation or food and beverages (F&B) served at hotels. 'The SST revisions do not affect basic daily goods but may affect hotels indirectly through the expansion of service tax to cover rental on commercial properties and also sales tax on selected food items such as premium seafood and imported fruits. 'However, these indirect impacts are unlikely to translate to a 10 per cent to 15 per cent increase in costs faced by hotels,' MoF told Bernama when asked about a possible hike in hotel rates due to the extended SST. The ministry was responding to claims by hotels that they would need to raise room prices by 10 to 15 per cent following the revised tax structure. The MoF added that if hotels proceed to raise rates on the pretext of the SST, the government, through the Ministry of Domestic Trade and Cost of Living (KPDN), will examine the matter to prevent unreasonable price increases. 'If there are hotels that do raise rates by 15 per cent on the pretext of SST, the government, through KPDN, will review the impact of SST on these hotels to ensure there is no element of profiteering,' it said. — Bernama
