Handle SST expansion impact wisely – Ameer

SHAH ALAM – The expansion of the Sales and Services Tax (SST) scope by the government, set to take effect on July 1, is expected to impact several service sectors, including logistics and transportation.

Mydin Mohamed Holdings Bhd managing director, Datuk Ameer Ali Mydin, said the move requires careful consideration to minimise the ripple effect on the prices of goods, especially daily necessities such as food and imported items.

He said increases in transport-related costs, such as charges at Port Klang, could potentially affect overall logistics costs, which in turn may influence retail prices.

“For example, container charges that were previously around RM300 could rise to RM400.

“This increase will affect rent, logistics and eventually prices for consumers,” he told Sinar on Tuesday.

He added that in the context of tax systems, SST could sometimes cause confusion in terms of implementation and compliance, compared to the previously introduced Goods and Services Tax (GST) system.

“With GST, we clearly knew which items were taxable. SST is less clearand this could lead to price uncertainty,” he said.

However, he stressed that any move towards a change in the taxation system, such as reintroducing GST, should be done gradually and comprehensively.

“If the government intends to reintroduce GST, the approach must be well-planned and accompanied by suitable assistance mechanisms for low-income groups.

“This step is crucial to ensure the people are not burdened,” he said.

He also emphasised the importance of coordination between various economic policies to avoid compounded pressure on the public.

“Each policy must be evaluated based on its overall impact so that the public does not suffer consequences from decisions made in isolation,” he said.