Bung warns against rakyat bearing brunt of expanded SST

PARLIAMENT | Putrajaya should avoid burdening the rakyat with high sales and service tax (SST) rates, said Bung Moktar Radin (BN-Kinabatangan).

While the Sabah BN chief acknowledged that taxes are a necessary measure for the government to generate revenue and implement transformative developments, he argued that such levies should not be imposed at a rate that would put further pressure on the rakyat.

“The people are saying that the SST impacts all levels (of production), from those involved in processing, to those in the supply and retail sector,” Bung said in Parliament while debating the 13th Malaysia Plan.

He added that since the expansion of the SST scope, implemented on July 1, the people have to fork out more for their expenses.

“This is a matter that the government must look at fairly. Yes, we need the tax because the nation will not be able to carry out changes without it, but the tax should not burden the rakyat,” he stressed.

Under the revised SST scope, a zero percent sales tax on necessities was maintained while a tax of between five and 10 percent was imposed on non-essential goods.

The scope of the service tax was also expanded to include six new services: leasing or rental, construction, finance, private healthcare, and education.

The government expects the expanded SST to increase revenue by RM5 billion this year, and by RM10 billion in 2026.

Crack down on contraband smuggling

Bung also called on the government to crack down on the smuggling of illicit goods into the nation, including contraband cigarettes and alcohol.

“The government must be aware that illicit alcohol and cigarettes are frequently being smuggled into the nation. This does not bring any economic advantages to the government, (but) those involved in such activities are all over the nation and making billions of ringgit in profit.

“I’m not accusing any government agency of not being transparent, but if you have 30 (cases of smuggling) in a month and you only catch one or two (perpetrators), then many wrongdoers are getting away,” Bung said.

Praise for Shuhaily

He also showered his praises on Border Control and Protection Agency director-general Shuhaily Zain, commending the former Bukit Aman Criminal Investigation Department director for taking firm action to ensure that the agency is up to mark in carrying out its duties.

"Even though he is ‘hard’, to me, he is taking the necessary measures to remind his staffers that the nation needs firm officers who cannot be bought off while prioritising the country and the rakyat,” Bung said.

Shuhaily previously warned his charges under the agency against getting involved in “counter setting” syndicates, cautioning that there would be zero tolerance for any officer or personnel under his command if they were found guilty of misconduct or corruption.

He also said that one of his goals while in office is to transform the agency’s officers to be capable of handling tasks for multiple agencies while being versatile in their responsibilities.

Reporting by Qistina Nadia Dzulqarnain, Zarrah Morden, Alyaa Alhadjri, B Nantha Kumar

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