Finance Minister Lim Guan Eng today lambasted former Prime Minister Najib Abdul Razak who disputed the implementation of the sales and service tax (SST).
Lim questioned when the BN government implemented the goods and services tax (GST), Najib did not hear the grumblings from the people who had to pay tax for every product, however, after the implementation of the SST, the Pekan MP had started to complain.
"I’m astonished, when he (Najib) charged GST last time, he didn’t complain. At that time (GST) six percent, now also six percent, why at that time he didn’t complain but is complaining now.
"We hope the former premier don’t become a hero now. When he imposed GST at six percent was far worse. Now (SST) we are being quite flexible compared to before. Apparently, only now he realised, go to the shop must pay six percent, before this, he was unaware all shops charge six percent," he told a press conference in George Town today.
Najib, in a post on his Twitter account yesterday, lamented as the kuih pau he bought was charged SST and he also uploaded the receipt he received from the restaurant which showed the SST amount of RM3.80.
"Stopped at Pau Yik Mun restaurant, Tg (Tanjung) Malim to buy pau. Clearly SST is imposed even though this shop is mid-sized! Pau shop also subject to SST," wrote Najib.
Lim, who is also Bagan MP, said the implementation of SST was different from GST as only one-third of items were subject to SST compared with GST which was imposed on all goods and services.
He reiterated that the SST was only imposed on restaurants with annual turnover or threshold value of RM1.5 million and SST exemption involving rental of small stalls and sale of cigarettes to food and beverages shop operators.
"Under SST we are a bit flexible, we set annual revenue or threshold value of RM1.5 million... three times higher than GST. So, not all are subject to SST, only those with revenue exceeding RM1.5 million must pay SST.
"Not like GST, everything is taxed. It’s a ‘clean sweep’ tax. You carry out business, have to pay tax, don’t do business, also pay tax, poor people also have to pay (GST)," he said.
Effective Sept 1, SST is implemented at 10 percent for sales tax and six percent tax for service, replacing GST following the Sales Tax Bill 2018 and Service Tax Bill 2018 which were passed in Parliament on Aug 20.
GST was enforced on April 1, 2015 at a rate of six percent, introduced by the previous government to replace SST.