The Sales and Service Tax (SST) will ease the burden of Malaysians as the prices of goods will not increase, said Tun Dr Mahathir Mohamad.
According to the Prime Minister, the SST will help Malaysians to save around RM20bil annually.
He said the SST will collect around RM25bil compared with RM42bil under the previous Goods and Services Tax (GST).
“Allegations that the SST will increase prices of things are not true. The SST rate is not 16% as claimed.”
“Some will be taxed at 10% or even 5% and there are even items which will not even have taxes imposed on them,” the Prime Minister told a press conference at Yayasan Selangor here after a Parti Pribumi Bersatu Malaysia supreme council meeting on Friday.
Meanwhile, Dr Mahathir said his upcoming trip to China will be a follow up to Tun Daim Zainuddin’s visit.
He said Chinese companies will be invited to invest in productive capacities in Malaysia, using Malaysian labour and sources.