(Kuala Lumpur, 11th) The National Chairman of the Malaysian People’s Movement Party, Dato’ Liu Huacai, believes that whether the government adjusts the sales and service tax rate (SST) or expands its applicable scope, it ultimately falls on consumers to bear the cost. How can the government ensure that this adjustment will not lead to price increases?
“If prices fluctuate, is the government willing to take responsibility?”
He criticized the unity government, saying it has yet to turn the country's economy around since taking office, and that most of the potential investments announced during Prime Minister Dato’ Seri Anwar's official overseas visits have “submerged” and not materialized.
“On the contrary, over the past year, there have been continuous adjustments to tax rates targeting ordinary citizens. In more than two years of governance, only national debt has continued to rise, and the cost of living for the people has become increasingly burdensome.”
“From the current perspective, the government has not achieved actual national economic revenue results, instead, it has been borrowing new debts to repay old ones. Taxing imported food and machinery will raise the operating costs of SMEs, impacting their competitiveness in the regional market.”
He agrees with the stance of the SME association that the government must re-evaluate the thresholds set for SMEs, raising the annual turnover from the current MYR 500,000 to 1.5 million or 2 million, to reduce the impact on SMEs' profits and sales prices.
In a statement on Wednesday, Liu Huacai said that consumer confidence is currently low, and consumer companies may face profit margin pressures; prices may not show significant differences in the short term. However, if operators cannot absorb operating costs, within three to six months, the pressure will inevitably be transferred to consumers, which will negatively impact the consumer sector.
“When SST was initially implemented by the government, it was said to help stabilize prices, but facts have proven that prices have not become cheaper with the rollout of SST. The government cannot indiscriminately expand SST tax rates and scope of collection without restraint, as this will not solve the root problem, nor will it help the government improve the national treasury situation.”
He said that last year's data provided by the Ministry of Finance has proven that the government’s revenue from the current sales and service tax (SST) is far less than the goods and services tax (GST).
He stated that by the end of 2023, the annual average revenue of SST is 51.6% less than GST. Why does the government still refuse to study the suggestion to re-implement GST?
“If prices fluctuate, is the government willing to take responsibility?”
He criticized the unity government, saying it has yet to turn the country's economy around since taking office, and that most of the potential investments announced during Prime Minister Dato’ Seri Anwar's official overseas visits have “submerged” and not materialized.
“On the contrary, over the past year, there have been continuous adjustments to tax rates targeting ordinary citizens. In more than two years of governance, only national debt has continued to rise, and the cost of living for the people has become increasingly burdensome.”
“From the current perspective, the government has not achieved actual national economic revenue results, instead, it has been borrowing new debts to repay old ones. Taxing imported food and machinery will raise the operating costs of SMEs, impacting their competitiveness in the regional market.”
He agrees with the stance of the SME association that the government must re-evaluate the thresholds set for SMEs, raising the annual turnover from the current MYR 500,000 to 1.5 million or 2 million, to reduce the impact on SMEs' profits and sales prices.
In a statement on Wednesday, Liu Huacai said that consumer confidence is currently low, and consumer companies may face profit margin pressures; prices may not show significant differences in the short term. However, if operators cannot absorb operating costs, within three to six months, the pressure will inevitably be transferred to consumers, which will negatively impact the consumer sector.
“When SST was initially implemented by the government, it was said to help stabilize prices, but facts have proven that prices have not become cheaper with the rollout of SST. The government cannot indiscriminately expand SST tax rates and scope of collection without restraint, as this will not solve the root problem, nor will it help the government improve the national treasury situation.”
He said that last year's data provided by the Ministry of Finance has proven that the government’s revenue from the current sales and service tax (SST) is far less than the goods and services tax (GST).
He stated that by the end of 2023, the annual average revenue of SST is 51.6% less than GST. Why does the government still refuse to study the suggestion to re-implement GST?