KUALA LUMPUR, Aug 26 — The overall impact of the Sales and Service Tax (SST) on households is thought to be low and manageable, based on early Finance Ministry (MOF) projections, said Deputy Finance Minister Lim Hui Ying.
Lim said this was due to various relief measures and exemptions introduced as mitigation steps to ensure the tax burden is fairly distributed.
“It is still too early to assess the full impact of SST implementation on the public, given that the expanded scope of SST only began on July 1, 2025.
“However, based on the ministry’s initial projections, the impact on households is estimated to be low and manageable,” she told the Dewan Negara during a question-and-answer session today.
Lim was responding to Senator Datuk Ros Suryati Alang’s question about the effects of the SST implementation on July 1 on the public and whether the strategy has helped the government cover operational and development expenses without increasing loans or debt.
Lim said this approach aligns with the principles of social and fiscal justice and supports Madani Economy aspirations that emphasise public welfare and national sustainability.
She said that with the expanded SST scope, the government expects to generate an additional RM5 billion in revenue this year.
“This additional revenue, combined with an optimal and prudent spending approach, has strengthened the country’s financial position, enabling the government to cover operational and development expenditures without the need to increase loans or incur high debt.
“The increased tax revenue also allows the government to continue providing subsidies on basic essentials through consumption subsidy allocations to the majority of the population, helping ease the cost of living. This includes programmes such as the Sumbangan Asas Rahmah (SARA) and Sumbangan Tunai Rahmah (STR),” Lim added.
