Have you done your homework, Hamzah asks govt over SST hike

Have you done your homework, Hamzah asks govt over SST hike

Have you done your homework, Hamzah asks govt over SST hike
Hamzah Zainudin said the proposed increase in the sales and services tax rate is estimated to raise the government’s revenue by only RM1 billion. (Bernama pic)

PETALING JAYA: Opposition leader Hamzah Zainudin has questioned whether the government conducted a cost-benefit analysis comparing the implementation of the goods and services tax (GST) at a lower rate with increasing the sales and services tax (SST).

The Perikatan Nasional secretary-general expressed scepticism about the potential effects of raising the SST rate from 6% to 8%, an announcement made during the tabling of the 2024 budget last Friday.

“Increasing the SST rate is only estimated to increase revenue by around RM1 billion, which is equivalent to 0.25% of the budget,” he said when debating the 2024 budget proposals in the Dewan Rakyat.



“At the same time, this measure may contribute to the increase in the price of goods overall in the supply chain.”

A 6% GST was introduced in 2015 under then prime minister Najib Razak, but it was abolished by the former Pakatan Harapan government and replaced with the current SST system in 2018.


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In the lead-up to the 2024 budget tabling, many parties had called for Putrajaya to reintroduce GST in next year’s budget to increase the country’s revenue.

However, Prime Minister Anwar Ibrahim instead announced the SST rate hike and gave an assurance that it would not include services, such as food and beverages, and telecommunications.

Hamzah, who is Larut MP, also said the government should provide detailed information regarding the projected revenue generated by specific measures, such as the 10% capital gains tax, the 5% to 10% luxury goods tax, and the increase in excise duties for sugary drinks.

He added that the potential savings from measures such as the lifting of price controls on chicken and eggs, targeted electricity usage, and rationalisation of diesel subsidy, should also be disclosed.



“The lack of information gives the impression that the government is implementing an ‘announce first, think later’ policy,” the former home minister said.

“An explanation and breakdown of the estimated revenue and savings are essential to allow the public to evaluate the government’s fairness in implementing these measures, which undoubtedly have an impact on their daily lives.”

Have you done your homework, Hamzah asks govt over SST hike


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