Selangor Journal
A collection of Malaysian coins in Batu Kurau, Perak, as seen on June 30, 2024. — Picture by BERNAMA

Consumption-based tax collection lower after SST reimposition

KUALA LUMPUR, July 10 — The collection of consumption-based tax revenue has decreased following the re-implementation of the sales and service tax (SST) to replace the Goods and Services Tax (GST), according to the Finance Ministry (MoF).

After the GST was introduced in April 2015, RM37.7 billion was collected for 2015, RM55.7 billion for 2016, RM60.5 billion (2017), and RM30.9 billion (2018) until May 2018.

After its reimplementation, the SST collection was RM5.4 billion from September 2018 to December 2018; RM27.6 billion (2019), RM25.2 billion (2020), RM25.5 billion (2021), RM31.3 billion (2022), and RM35.4 billion (2023).

“Overall, the GST collection from April 2015 until it was abolished in May 2018 amounted to RM184.8 billion while the total SST collection was RM150.4 billion between September 2018 and 2023,” it said in a written response posted on the Parliament’s website yesterday.

The MoF was responding to Temerloh MP Salamiah Mohd Nor’s query on whether tax revenues and national reserves rose after the SST was reintroduced and if the SST was one of the main reasons for the continuous increase in the price of goods.

Comparing the total revenue collection between the GST implementation period and that of the SST, the average annual SST collection was 51.6 per cent lower against the GST due to the smaller scope of the SST.

“The main factor for the lower collection in the SST is due to the smaller scope of the SST, which covers 41 per cent of all goods and services sold in the market compared to 76 per cent under the GST,” it said.

Meanwhile, other factors, including demand and supply, global commodity prices, prices of imported goods and foreign currency exchange rates, also affect the pricing of goods and services, and the SST cannot be considered as the main reason for the continuous rise in prices.

“In addition, there are also traders and service providers who take advantage by increasing the price of goods sold to make excessive profits despite not being affected by the imposition of SST,” said the MoF.

— Bernama

Top Picks

Local semiconductor industry benefits from US-China trade tensions — MSIA

Editor Selangor Journal

Malaysia calls for stronger Asean unity amid shifting global power dynamics

Editor Selangor Journal

Over 1,400 police personnel faced disciplinary action last year — Bukit Aman

Editor Selangor Journal