KUALA LUMPUR, May 18 — The government is expected to raise RM30 billion from the collection of Sales and Services Tax (SST) revenue once implemented fully, says Tun Daim Zainuddin.
The head of the Council of Eminent Persons, however, said that the mechanism for the SST is still being mulled and that its implementation may take two to three months to be finalised.
“It will take some time to do it. It’s not like you do it immediately after saying, ‘I want to do it’. We must come up with the proper mechanism first.
“The figures are not finalised but it would maybe raise around RM30 billion,” he told a press conference at Ilham Tower here today.
Daim, who chaired five meetings today however said, he could not give an estimation of the new rate of SST as the proper calculations and planning have not been made.
Yesterday, the Finance Ministry had promised to set the Goods and Services Tax (GST) at zero-percent from June 1 onwards under its fiscal reform initiatives.
SST, which was previously used as a mechanism to increase the country’s revenue prior to GST’s introduction in 2015, will now be making a comeback at a revised rate and possibly a new mechanism.
GST abolishment is one of Pakatan Harapan‘s promises within the first 100 days of taking over Putrajaya.