Delay SST expansion, power tariff and RON95 hikes, Radzi tells govt

Summary

• Perikatan Nasional information chief Radzi Jidin urges the government to postpone the SST expansion, power tariff review, and RON95 subsidy rationalisation, which are planned to take place soon.

• He says such measures would only affect an already burdened rakyat.

• Radzi adds that it is not the right time to implement such measures given the volatility of the global markets.

Amid brickbats over the looming expansion of the Sales and Services Tax, a Perikatan Nasional leader urged Putrajaya to postpone any decisions that would increase the cost of living.

PN information chief Radzi Jidin said this includes the proposal to raise the electricity tariff and subsidy rationalisation for RON95 petrol, which are scheduled for the second half of the year.

“The reality is, all these measures would burden the people and businesspersons.

“Everyone will be impacted like what happened after diesel prices got floated (to market prices) last year,” he said in a statement today.

Triple threat

On Jan 9, Finance Minister II Amir Hamzah Azizan said the government would expand the SST beginning July 1 to cover more goods and services.

While a zero percent sales tax on necessities will be maintained, non-essential goods will be taxed between five and 10 percent.

“The government is committed to continuing the reforms under the Madani Economy framework.

“To ensure that the majority of people are not affected by the revision, the Madani government is taking a targeted approach to ensure that basic goods and services are not taxed.

“In addition, various facilities are also being provided to mitigate the impact on micro, small, and medium enterprises (MSMEs),” he added.

Apart from the SST expansion, the government is also mulling reviewing the electricity tariff in July, but Prime Minister Anwar Ibrahim insisted it would not affect 85 percent of the population.

The government is also planning to implement a subsidy rationalisation for RON95.

Social security net first

On that note, Radzi said it was important for the government to provide a holistic social security net for all Malaysians before rationalising subsidies.

He also pointed to the volatility of the global markets, which is affected by the trade war between the US and China and Donald Trump’s tariffs.

“All these are affecting the global supply chain and a rise in production and operational costs in many countries, including Malaysia.

“Generally, we all know that once a price hike happens, it’s difficult for it to come down again,” the former education minister added.

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