Subscribe to our Telegram channel for the latest updates on news you need to know.
PUTRAJAYA, Aug 30 — The government had to hasten the implementation of the sales and service tax (SST) by September 1 as it desperately needs the money to run the country, Finance Minister Lim Guan Eng said today.
“Much as we want to delay it, we have no choice. I know there are still so many questions about the (SST) formula,” he said.
He said if it’s not implemented by September 1 the country would face an operating expenditure deficit as Malaysia will be short of RM4 billion.
He said with the deficit, the revenue collected will be insufficient to pay operating expenses such as salaries of civil servants and maintenance of offices.
“We can’t afford to suffer that,” he said during a media briefing on the SST.
Lim said in the meantime, the government will continue to hold discussions with businesses and all other relevant parties nationwide to get their feedback and continue to improvise the list of exemptions.