The re-introduced sales and services tax (SST) may likely increase the cost of doing business for several industries in Malaysia post-Sept 1, according to KPMG executive director for indirect tax practice Ng Sue Lynn.
Sue Lynn pointed out that the SST will be an additional cost for businesses in several sectors that are not exempted under the indirect tax regime. “In comparison, the goods and services tax (GST) is a cost for the end consumers, rather than the businesses. This was because companies can claim back the input tax paid under the GST and pass the tax burden to the consumers,” she said.
Sue Lynn, together with KPMG executive director for tax risk management Soh Lian Seng were speaking at The Star’s empowerment talk on “Transitioning to SST”.