new tax likely to cover more goods and services - household electrical appliances

The new sales and service tax (SST)
Compared to the old SST system, it may cover a wider range of goods and services to generate more revenue for the government.
"Due to the narrow range of the old SST, the coverage of the new SST, especially the service tax, may be expanded.
"Lifestyle goods and services for higher class consumption
A higher sales tax may be imposed on income families, "Socio-
Executive director of Li Henggui economic research center.
"Like the old SST, 20% sales tax on alcoholic and non-alcoholic beverages
An alcoholic compound preparation for the manufacture or manufacture of beverages.
"Despite this, the basic necessities and services that B40 families mainly consume should be properly considered to ease the price pressure on their disposable income," he said . ".
Another economist told StarBiz that the new SST could cover more goods and services to generate higher indirect tax revenue after the GST (GST)was zerorised.
However, not everyone believes that the range of goods and services taxed under SST will be expanded.
Ma Kalan Mutin, chief economist at Malaysia United Bank Bhd, said
The imported SST may cover a range of goods and services similar to the previous system, at least in the short term.
"If the government introduces a wider collection of goods and services tax compared to the old SST system, consumers may bear more costs than the GST.
"With the government aiming to replace GST with SST to reduce the cost of living for rakyat, wider coverage of SST will not be just," he said . ". Post-
After the implementation of SST, the Ministry of Finance expects revenue for the remaining months of the year to be RM4bil.
Under the old SST in 2014, the government collected nearly 17 yuan.
2bil, while the tax value of goods and services in 2017 is RM44bil.
The Treasury Department hinted in a statement yesterday that,
The annual collection of SST may be RM21bil.
Manokaran said the government may use revenue from SST and higher dividends from the state to make up for a shortfall in revenue due to the cancellation of GST
Petroliam Nasional Bhd, a state-owned oil company.
"In addition to administrative costs --
"Reducing the measures implemented to prevent financial loss, the government is expected to fill in lower income after the abolition of goods and services tax," he said . ".
Pakatan Harapan promised in the election to abolish the GST and replace it with SST, with the aim of reducing the rising cost of living for Malaysians.
However, economists say,
SST is unlikely.
They also expected,
Introduction of SST leads to higher market prices, even if the indirect tax regime covers fewer products than it does nowzerorised GST.
However, the real impact remains to be seen.
On July 16, Finance Minister Lin Guanying announced that a 6% tax would be imposed on the provision of services, while according to SST, a 10% tax would be imposed on the sale of goods.
However, he did not elaborate on whether the coverage of goods and services under the new SST system would expand compared to the SST system before the introduction of the GST in April 2015.
Lim said in a statement issued yesterday that the new SST system will benefit Malaysia's low
In the long run, the income is generous.
"Unlike GST, the new SST will also be adjusted and designed to ensure the impact on the lower class
The income group will be reduced proportionally.
"When the new SST bill is presented to Parliament during this session, details of the improvements will be announced," he said . ".
Consumers can experience rising prices for a variety of goods and services, including consumer durables, household appliances and restaurant dining, Li said.
"Since June, prices for some goods and services have not dropped significantly since the GST was canceled, and we are concerned that price pressures may increase again when SST starts.
"In the past, manufacturers who have enjoyed goods and services taxes but do not enjoy SST-mandated input taxes may pass on the increased costs to wholesalers and retailers.
Cascading tax and cost effects will lead to higher consumer prices, "he said in contact with StarBiz.
Li also suggested that the relevant price enforcement agencies in Malaysia issue a price guide before and after
SST for basic necessities and consumer durable goods to increase consumer awareness.
At the same time, Manokaran also expects prices for certain goods and services to be
Implementation of SST.
He noted, however, that overall prices should fall compared to the level of GST.
This is mainly due to the fact that the 10% sales tax is a single phase tax imposed on a single tier within the manufacturer level, while the 6% service charge is imposed in the final
Consumer level of service.
On the other hand, 6% of the GST is a package tax system that, from the beginning to the end, imposes on every level of the supply chainconsumer.
Therefore, the longer the line of the supply chain, the greater the tax amount levied, and when the goods are finally consumed, the price will be much higherlevel.
"In addition to the price of large consumer goods
Even after the cancellation of the GST, ticket items such as vehicles did not really drop because a large portion of the consumer goods were already Zero
Rating or exemption.
"That's why consumers don't feel the impact of falling consumer prices unless they're thinking of buying on a large scale --
Non-ticket items such as vehicles, electrical appliances and luxury goodsNecessities.
"Therefore, we expect prices for certain commodities to rise after SST implementation, such as big-
The price of consumer goods may remain the same, "he said.
Manokaran also pointed out that only by monitoring and regulating the price abuse of SST systems by their respective government agencies, Malaysian talents will enjoy a lot of savings.
Last week, new-
Datuk sayyfdin nasudí Ismail, appointed Minister for domestic trade and consumer affairs, said that after the cancellation of the GST, the overall price decline was small.
He quoted a survey covering 417 projects as saying the price cut after June 1 was only 0.
04% and 13% of 70% of investigation project.