ISKANDAR PUTERI, June 19 — Prime Minister Datuk Seri Anwar Ibrahim said the government will provide a more detailed explanation regarding the expanded Sales and Service Tax (SST), which will take effect on July 1.
He acknowledged that there was confusion regarding the expanded tax and the government aims to ensure that its implementation will be done in a targeted manner.
"I agree that the government needs to give an explanation and to clarify the matter.
"What is important is that we do not want to burden the lower-income groups or the M40,” he told reporters after attending a close-door Johor PKR leadership event held at the Mall of Medini here today.
The prime minister attended in his capacity as the PKR president.
Anwar, who is also the finance minister, explained that previous general statements on the expanded SST had also caused some confusion.
He gave an example of a statement saying that bananas were soon subjected to the SST, but clarified that this only applied to imported bananas.
"This issue has created some confusion where the public argued that even the poor consume fruits.
"This is an area where the government can address to the public in addition to making one or two changes,” he said.
Anwar said taxation was an important feature for the government as it will see to better schools and public hospitals.
"We have to think of where the government can get funds to maintain public hospitals with better facilities and improved school buildings,” he said, adding that such taxes are mainly for those that are in the higher income bracket and foreigners.
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