Retailers group proposes Sales & Services Tax of below 6%

05 Jun 2018 / 21:29 H.

    KUALA LUMPUR: The Malaysia Retailers Association (MRA) has suggested that the Sales and Services Tax (SST) be implemented at a lower rate or less than 6% to avoid a significant impact on prices which will indirectly affect consumers.
    MRA president James Loke said the lower rate was suggested during his briefing with the Council of Eminent Persons earlier today.
    “We share our thoughts on SST, hopefully the (rate) is not that high. If high, it would impact the cost and selling price of products.
    “We understand that the government needs revenue to support this country but we just hope (on) the wisdom of the Council (members) to come up with a good rate,” he told reporters after the briefing held at Ilham Tower today.
    During the briefing, Loke said the Council had queried about the challenges faced by retailers and preparation ahead of the Goods and Services Tax abolishment, which would take effect on Sept 1.
    The GST was introduced in April 2015 at 6%, replacing the SST of up to 16%.
    The GST rate has been zerorised from June 1 until Aug 31.
    Loke said the zero-rated GST is perceived as a positive change by consumers as they have more buying power.
    “Last weekend, business was good as a lot of consumers waited for the prices to go down,” said Loke who was accompanied by his deputy president Shinobu Washizawa. – Bernama

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