KUALA LUMPUR: The government's move to fine-tune the Sales and Service Tax (SST) will not significantly affect its revenue collection but will have a positive impact on the people, said an economist.Professor Emeritus Dr Barjoyai Bardai, provost at Malaysia University of Science and Technology, said the expanded SST was expected to boost tax collection to RM51.7 billion in 2025, up from the earlier forecast of RM46.
7 billion."I don't see this (tax collection) being affected too much by the exemptions for the beauty sector, apples, oranges and dates, as well as the increased SST registration threshold from RM500,000 to RM1 million for leasing, rental and financial services. "At most, I believe that it would be around RM1 billion to RM2 billion.
However, the tweaks will be a big relief for those on the ground."Barjoyai said the exemption for the entire beauty sector would help control inflation as personal care was a key expenditure for many people. "In May, the inflation rate for personal care stood at 3.
7 per cent, so this is the right move," he said, citing Statistics Department figures.Barjoyai said the increase of the SST registration threshold to RM1 million would see many micro, small and medium enterprises exempt from paying the eight per cent tax on leasing, rental and financial services. "This is especially important in rural and suburban areas, and for small shops in apartments and flats.
Their sales will not reach RM1 million a year."Still, he said, retailers in mal.
