By Selangor Journal Staff
PUTRAJAYA: The Finance Ministry has decided to increased the Sales and Services Tax (SST) threshold for food outlets to RM1.5 million.
Finance Minister Lim Guan Eng said this means that SST will only be subjected to eateries that earns RM1.5 million and above annually, from Sept 1 onwards.
“They have asked for the threshold to be increased from RM500,000. Some have asked for it to be increased to RM3 million annually, which is a bit too much.
“We’ve taken into account all their requests and we will increase the threshold to RM1.5 million. If their turnover is more than RM1.5 million, then they pay the tax. This is final,” he said.
Speaking during a media briefing on SST earlier, Lim hoped that the threshold increment would prevent eateries owners from increasing their prices.
He said the government’s approach with the SST is ensuring that the people’s well-being are taken care of which is more important than any tax revenue collections.
“We urge consumers to become our eyes and ears. If they find that eateries have increased their prices due to SST, they can complain to the Domestic Trade and Consumer Affairs Ministry,” he said.
Ruling coalition Pakatan Harapan in its manifesto has promised that they will get rid of Goods and Services Tax (GST) should they come into power.
After passing three bills at the previous Parliamentary sitting, starting Sept 1, the reintroduction of SST will be replacing the infamous 6% GST imposed by previous Barisan Nasional (BN) administration in 2015.
Selected items are subject to 5% to 10% tax while services will be subject to a 6% tax. More items will be tax-exempt with SST compared to the GST.