Manufacturers could face higher costs if the government widens the range of taxable categories under the revived Sales and Service Tax (SST), an industry association said.

The government has yet to announce the scope of the SST regime, which will involve sales tax at 10 per cent and service tax at 6 per cent.

Federation of Malaysian Manufacturers (FMM) president Datuk Soh Thian Lai said this issue would be raised in the federation’s meeting today with the Royal Malaysian Customs.

“The scope and range of products to be covered under this newly-reintroduced SST could be enlarged compared to previous SST era, which was in place until the end of March 2015.

“And this could increase cost burden especially to the selling price of the manufacturers and importers,” he was quoted saying by local daily The Star.

Soh said the government should increase the previous threshold of RM100,000 annual turnover for businesses to register under SST, as this will relieve smaller firms from having to register under the SST regime to be introduced this September.


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