The purchasing power of Malaysians will be boosted with the re-introduction of the Sales and Services Tax (SST) in September, said KPMG Tax Services Sdn Bhd Indirect Tax Advisor Datuk Tan Sim Kiat. He said the SST was a single level tax compared with the just zero-rated Goods and Services Tax (GST) which was charged at every stage of business transaction.
“A single level tax will put less burden on consumers and boost spending power further although the government might be on the losing end by foregoing extra revenue under the GST regime,” he told a press conference today after a briefing by KPMG and the Royal Customs Malaysian Department to business owners on how to file their taxes after the GST was zero-rated on June 1.
Last year, the government collected about RM44 billion in revenue from the implementation of the GST and with the SST in the pipeline, the government was only expected to accrue approximately RM30 billion in revenue, annually.
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