Business

Government needs to spell out scope of coverage under SST

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Written by Syndicated News

KUALA LUMPUR, July 19 2018 : The government needs to spell out the scope of coverage of goods and services to be taxed under the Sales and Services Tax (SST), said Aeon Co. (M) Bhd.

“It is difficult at this point in time to determine the impact that it will have on the prices of goods and services. 

“Maybe there will be some impact on the services,” Aeon executive director Poh Ying Loo said.

It is difficult to see the impact until the government provides a clear guideline and coverage, he told reporters after meeting the Council of Eminent Persons (CEP) at Menara Ilham here today.

The SST will be reintroduced in September, with the provision of services to be taxed at six per cent and the sales of goods at 10 per cent.

Poh said Aeon viewed its business rivalry, with the increasing number of convenience stores and online retailers, as a challenge that it would need to take on in the competitive retail market.

“The convenience store is a different format presented to the consumers. We need to improve our services and product offering to the consumers,” he added.

Meanwhile, GCH Retail Sdn Bhd (Giant Hypermarkets) said if the prices were to increase after the implementation of the SST, it would not be within the company’s control.

Managing Director Pierre-Olivier Deplanck said the prices were being controlled by manufacturers and importers.

“But as a defender of consumers, we will do everything we can to minimise those increased prices.

 “We will reject them (manufacturers) if they come with unreasonable price increases,” he added. – Bernama

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