KUALA LUMPUR, July 17 ― The government's move to return the sales and services tax (SST) will result in a “double whammy” for the public in terms of cost of living, Datuk Seri Najib Razak said today.
The Pekan MP asserted that the prices of goods have not dropped after the ruling Pakatan Harapan moved to “zero rate” the goods and services tax (GST) in June.
“The prices of goods has not really come down after GST was removed, and now you have SST on top of it, it will be a double whammy,” the former prime minister and finance minister told reporters at the Parliament lobby.
Yesterday, Finance Minister Lim Guan Eng said that the SST will be reintroduced at a rate of 10 per cent for sales and 6 per cent for services.
Najib claimed the reintroduction of the SST will frustrate the government's intention to lower prices by removing GST.
“So, the intention of the government will not be fulfilled as a result,” he said.
The former prime minister was responsible for introducing the unpopular consumption tax in April 2015.