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Fomca reminds Malaysians not to be over-excited with the SST

GST Msia

Nadhirah Sofea
Written by Nadhirah Sofea

KUALA LUMPUR – May 28, 2018: The Federation of Malaysia Consumers Associations (Fomca) is advising Malaysians not to expect too much when the Goods and Services Tax (GST) is effectively abolished from Friday.

“I think prices will be reduced because the process will take time. Malaysians cannot expect prices to be reduced immediately as there are processes that need to be completed,” said Fomca deputy president Mohd. Yusof Abdul Rahman.

Yusof is also reminding consumers to not expect price reduction to be too significant because the GST is only six per cent.

The GST is being zero rated pending the reintroduction of the Sales and Services Tax (SST) but this may take a few months, giving Malaysians a tax-free window.

Repealing the GST was one the promises of Pakatan Harapan during the recent 14th general elections campaign and outlined in its manifesto.

On the reintroduction of the SST, Yusof thinks prices will eventually increase.

“Prices are likely to change because under SST, the rate is 10 per cent compared to six under the GST. For example, we have been told that car prices are expected to increase under the SST regime.

 

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Nadhirah Sofea

Nadhirah Sofea