KUALA LUMPUR: Former Finance Minister Lim Guan Eng has urged the government to reconsider and postpone the proposal to increase the sales and service tax (SST).
He said the move might impact the people.
"The increase from six to eight per cent and the expansion of the scope to also include logistics is feared to increase the cost of living.
"Therefore, any proposal to implement new tax should be postponed due to the uncertain economic challenges," Lim said when debating the Supply Bill 2024 in the Dewan Rakyat today.
The Bagan member of parliament said he is hopeful that the government will not increase the SST this year.
He added, if the SST is increased to eight per cent, it will give the perception that the Goods and Services Tax (GST) is lower.
"The introduction of new taxes amid economic challenges and world geopolitical turmoil also has the potential to affect the country's growth.
"This particularly the capital gain tax for the disposal of unlisted shares by local companies based on net profit at a rate of 10 per cent from March 1 next year."
Meanwhile, Pagoh member of parliament Tan Sri Muhyiddin Yassin has pointed out the lack of explanation on the mechanism for subsidy rationalisation.
Muhyiddin said a total of RM52.8 billion has been allocated for subsidies and social assistance in the budget, a reduction from the RM64.2 billion allocated for this year.
"However, it was unfortunate that the mechanism for subsidy rationalisation, or how it is going to be implemented was not explained."
Muhyiddin also questioned Prime Minister Datuk Seri Anwar Ibrahim statement, saying that the savings from subsidy rationalisation will be distributed to the target groups.
"When will it be distributed back to those who are eligible to receive them? In a year or two?
"With the absence of a mechanism, this will undoubtedly take a considerable amount of time."