KUALA LUMPUR, Jul 17 – The Sales and Services Tax (SST) will not burden the people more than the Goods and Services Tax (GST), as the government will only collect RM21 billion a year and “return” the RM23 billion difference to them, according to Finance Minister Lim Guan Eng.
He said the expected collection from SST was estimated at only RM21 billion for a full year, compared with the previous government’s projected GST collection of RM44 billion for 2018.
“False claims by Umno that SST will burden the people even more than GST is illogical. According to them, my announcement that reverting to the old system of sales tax at 10% and services tax at 6% means that the tax rate would be at 6%, higher than the 6% GST,” he said in a statement.
Lim added that it was untrue, as one could not simply add the sales tax and services tax together, “which would be equating apples with oranges.” — Bernama