KUALA LUMPUR: MCA vice-president Datuk Tan Teik Cheng has criticised Transport Minister Anthony Loke over the delayed action in addressing the increase in Sales and Service Tax (SST) for the logistics and domestic flight sectors.
This comes after Loke had requested to exempt the SST increment after the implementation on March 1.
"It has been five months since the presentation of the 2024 Budget in October 2023, but he has just informed the media that it would be addressed in this week's cabinet meeting.
"Why didn't Loke raise this issue throughout the past five months?" he asked in a statement today.
However, MCA hopes that Loke will take advantage of this moment to appeal for an exemption from the SST hike for the logistics sector.
MCA believes that any rise in transportation expenses will trigger a chain reaction, ultimately burdening consumers with higher prices for goods.
"Furthermore, it is unfair for the government to impose these additional costs on business operators, while at the same time increasing tax rates for all sectors.
"It must be remembered that SST is not like the Goods and Services Tax (GST) which has a tax rebate mechanism.
"Therefore, the government's actions will cause many traders, especially small and medium-sized enterprises (SMEs), to suffer losses or close down, which directly affects consumer power as well," he said.