SST at 10% for sales, 6% for services, says Guan Eng

Foto Roketkini

KUALA LUMPUR : Finance Minister Lim Guan Eng today announced that the sales and services tax ( SST ) rate will be set at 10 % for sales and 6 % for services, with the bill on the tax expected to be passed in Parliament next month .

In his keynote address at the National Tax Conference 2018 at KLCC today , he said the SST was expected to bring in revenue of RM 4 billion.

The government earlier said the SST would replace the 6 % goods and services tax ( GST ) on Sept 1 .

It expects to lose RM 21 billion in revenue this year after zero - rating the GST on June 1 .

However , the reintroduction of the SST , coupled with rising crude oil prices and extra dividends from government - linked companies , is expected to bring in an additional RM 14 . 4 billion in revenue this year .

To fill up the gap left by the GST , Lim added , the finance ministry had identified RM 10 billion worth of expenditure saving measures including downsizing and abolishing overlapping and non - urgent programmes.

Exorbitantly priced mega projects will also be cancelled or deferred , he said .

In his speech , he also said the Light Rail Transit 3 ( LRT3 ) project had to be scaled down due to 1 MDB and other financial scandals .

He added that there would be no more office raids accompanied by officers with firearms on companies accused of tax evasion .

“ No more rough tactics like in the past . Such tactics are only for bad people , ” he said . - FMT