SST to apply only to certain products and services – BorneoPost Online | Borneo, Malaysia, Sarawak Daily News

The Minister of Finance Lim Guan Eng said that the 5% and 10% sales tax applies to certain manufactured and imported products, and not to all products, unlike the tax on products and services (GST). ] KUCHING: The result of the sales and services tax (SST) has been projected by analysts, with different products and services to be allocated differently.

In a recent statement on OSH to be implemented on September 1, In 2018, Minister of Finance Lim Guan Eng said the sales tax at the rate of 5% and 10% applies to certain manufactured and imported products, and not all products, contrary to the Goods and Services Tax (GST). "The six per cent service tax applies to certain services and not to all services, unlike the GST," Lim said. "The sales tax is imposed on the price of manufacturers and importers, while the GST is taxed on the final consumer price."

AmInvestment Bank Bhd (AmInvestment Bank) pointed out that the 6% GST aroused strong criticism. "Businesses have been dissatisfied with the difficulties in repayment that can be denied and a minimum of RM500,000 in annual sales before they can do it."

"And the middlemen took advantage of the GST by raising prices and using the tax as a tool to make a profit, "said the research firm.

To find out if prices will rise after the SST implemented, AmInvestment Bank felt that the result could be mixed simply because it depends on the combination of sales tax and service tax

"Sales tax is imposed on the cost of manufacture or the cost of importation. The vice-tax covers a range of services. In addition, it depends on the types of goods and services that will be subject to OHS.

"As a result, different products and services will be affected differently, which means that prices will vary depending on the impact, suggesting that households may pay marginally more for some products and services or the same for some products. . "

Overall, AmInvestment Bank noted that the opportunities to reduce the overall tax burden The research firm also noted that it will depend on the coverage of the TVS

" Assuming that the coverage n & # It does not affect the goods and services of low- and middle-income groups, their disposable income will improve, which will increase their purchasing power. "