SST Credit System Budget 2019

“The [sales tax] credit system could potentially be an efficient facility as it would allow small manufacturers to source their manufacturing inputs from local importers or traders, rather than importing directly. This would streamline the sales tax treatment of imported and locally sourced materials,” Yeoh tells Enterprise.

“Any sales tax embedded into the price of goods purchased from these importers can be claimed as a credit by the manufacturers. This, in turn, would result in a more tax-efficient environment within the manufacturing sector.

“We still need to wait for the government to provide the specifics of how such a credit system is to be implemented.

The Edge dated 5 November 2018

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