04-07-2025
Report: Expanded SST likely to cause price hike for paper-related products including stationery
Photo for illustration purposes only. — Pexels photo
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
