SHAH ALAM, 27 Oct: The implementation of the GST will only increase the price of goods and the tax burden would have to be shouldered even after the abolition of the Sales and Service Tax (SST).
Serdang Member of Parliament, Dr Ong Kian Ming said that the Umno-BN Government is misleading the people by giving the impression that most of the prices of goods and the taxes paid by consumers will be reduced after the introduction of the GST.
"The truth is that the tax imposed under the SST is far less than what is taxable under the GST," he said in a statement.
Kian Ming said among other things claimed to not be under the sales tax but will be under the GST includes many non-luxury items such as milk, tea, mineral water, canned fruit, newspaper, stationery, school bags and boxes.
He said consumers of electricity below 200kWh (any amount exceeding RM50) will also be charges the GST. The price of these items will definitely increase after the GST because the abolishing of the SST has an impact on price.
Currently, the sales tax is limited to certain restaurants and professional services such as accountants, architects, motor vehicle service and repair centres, telecommunication services, security services, real estate agents, car park operators and legal services.
"The broader coverage under the GST means that more services will be subject to the GST compared to the current service tax. This would mean that the price of services will increase.
"The truth is that the GST will increase the price of the majority of goods and services even after removing the SST, the financial burden of the people will increase," he said.
