The issue of implementing the expansion of the scope of the Sales and Services Tax (SST) starting July 1, 2025, has indeed become a very hotly debated issue among Malaysians, inviting various reactions among them.
In connection with this, several economists and ministries have come forward to clarify the matter by emphasizing that the issue is not expected to have a major impact on most people, but rather help stabilize inflation and increase the transparency of the country's taxation system.
Economist, Professor Geoffrey Williams, said the government remains optimistic about achieving the tax revenue collection target of RM10 billion per year, even though certain goods and services such as apples, oranges, dates and beauty services are exempted from SST.
He also described the government's action as a responsible and balanced step in an effort to increase national revenue without directly burdening the people.
Meanwhile, the banking industry has also assured that consumers will not be affected by the implementation of the new SST.
In a joint statement, the Association of Malaysian Banks (ABM), the Association of Islamic Banking Institutions of Malaysia (AIBIM) and the Malaysian Investment Bankers Association (MIBA) explained that basic banking services such as current accounts, savings accounts, and similar accounts including digital wallets (e-wallets) will not be taxed.
In the education sector, the Minister of Women, Family and Community Development, Datuk Seri Nancy Shukri explained that SST is only applied to private educational institutions that charge fees exceeding RM60,000 per year per student and full exemption is given to the disabled (OKU) for educational services.
However, the Chief Executive Officer of the Centre for Market Education (CME), Carmelo Ferlito reminded the government to monitor public spending more prudently to avoid inflationary pressures resulting from uncontrolled government spending.
In short, the implementation of the expanded SST is not seen to have a major impact on ordinary consumers, as long as the government ensures that spending remains under control and the tax system continues to be implemented fairly and clearly.
