SST will not lead to significant price changes

KUALA LUMPUR: The implementation of the Sales and Service Tax (SST), beginning Saturday, will not cause hardship to consumers as there will be no significant price hikes.

This is because the six per cent service tax and 10 per cent sales tax will only be imposed on certain products and services.

Finance Minister Lim Guan Eng has said that the SST would only be applicable to 38 per cent of the Consumer Price Index basket of goods compared with the 60 per cent under the Goods and Services Tax (GST) regime.

Essential and basic food items like margarine, tinned sardine, dairy products, coffee, tea, chilli and tomato sauce, cereal, tofu, eggs, flour, baby food products and bottled drinking water will not be subject to SST.

Bernama dated August 30, 2018