Sst Will Generate An Extra Rm5bil Next Year Says Minister


 
Finance minister II Amir Hamzah Azizan said the increase in revenue would be sufficient to fund the government’s current needs. (Bernama pic)
PETALING JAYA: Finance minister II Amir Hamzah Azizan said today the expansion of the sales and service tax (SST) effective from May 1 next year is expected to generate RM51.7 billion in revenue in 2025.
He said this would represent an additional revenue of RM5 billion over the current SST collection forecast of RM46.7 billion, Bernama reported.
“Of the RM5 billion forecast, RM2.2 billion will be from the collection of sales tax while RM2.8 billion will be from the collection of service tax,” he said in winding up his ministry’s debate on the 2025 supply bill in the Dewan Rakyat.
“This increase in revenue will be sufficient to fund the government’s current needs and, at the same time, it will not burden the low-income group.”
Amir said the scope of the service tax would be extended to include the provision of commercial services between businesses, or business-to-business, which is currently not taxed.
The SST’s expansion is being done in a progressive manner so as to lessen its impact on the low-income group, he said.
He added that essential food items and services were not subject to SST.
Amir said part of the additional tax revenue would be used to enhance cash assistance provided to the rakyat, as well as to increase the quality of education and healthcare services. - FMT


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