The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has called for thoughtful planning around the implementation of the expanded Sales and Service Tax. 

The organisation stressed that the timing and rollout of these changes must be managed carefully, especially given the potential impact on small and medium enterprises. For mid-sized businesses in particular, the rise in operational costs could eventually filter through to consumers, pushing up inflation.

ACCCIM president Datuk Ng Yih Pyng said the government has taken a measured approach in identifying which areas to include under the revised tax structure, with the intention of limiting any adverse effects on the public and the business community. “However, the increased costs could dampen discretionary consumer spending due to higher prices of non-essential goods and a broader range of taxed services,” he said. 

Ng also pointed out that taxing rental and leasing services could significantly raise operating expenses for many companies, given that the exemption applies only to micro, small, and medium enterprises with annual sales below RM500,000. “We would like to appeal to the government to consider deferring the implementation of the expanded SST to a later date when macroeconomic conditions are more certain,” he added.

He acknowledged the growing concerns voiced by other business groups representing the construction, services, and manufacturing industries. These include the financial strain of increased costs, uncertainty about the scope of the new rules, and the short time frame given for businesses to prepare. “We agree with the concerns raised by business groups in the construction, services, and manufacturing sectors over the timing of the SST expansion, increased costs, lack of clarity, and insufficient time for preparation.”

Ng also said by urging the government to maintain open channels of communication with all affected stakeholders and to take their feedback into account to ensure that the implementation process is as smooth and transparent as possible.

(Source: The Star)

Samuel Chua

Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.

• TAGS:
• ACCCIM
• Associated Chinese Chambers of Commerce and Industry of Malaysia
• Inflation
• Operational Costs
• Sales and Service Tax
• SST
• Tax

About THE AUTHOR

Samuel Chua

Samuel Chua

Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.

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