05-07-2025
No notice, no consultation: Kepong MP demands answers over sudden SST hike on A4 paper from July 1
KUALA LUMPUR, July 5 – Kepong MP Lim Lip Eng has today slammed the government's sudden decision to impose a 10 per cent Sales and Services Tax (SST) on A4 paper products from July 1, calling it irresponsible and damaging to both the public and the economy.
He said the move, made without prior notice or consultation, has caught the industry and consumers off guard, disrupting contracts and causing losses to suppliers who are now forced to absorb the cost increase.
'Many companies had signed contracts to supply A4 paper, including to government departments, based on tender prices set a year ago,' Lim said in a statement here.
'How are they expected to continue supplying at the old prices when the tax rate has suddenly increased?'
The DAP questioned the lack of transparency behind the implementation, criticising the government for not announcing the tax hike earlier and for keeping stakeholders in the dark.
He also urged disciplinary action against officials involved in drafting the policy without consultation, suggesting they should face demotions to experience the consequences of abrupt decision-making.
Lim called on the government to provide a transition period of two to three months to allow the industry and consumers time to adjust.
He warned that such unilateral decisions could undermine investor confidence and damage Malaysia's economic reputation.
He stressed that the practice of introducing policy changes without notice must end to preserve transparency, accountability, and good governance.
