SST postponed, zero GST starts June 1

Finance Ministry reminds traders to lower their prices from June 1 with 0% GST.

(FMT) – Implementation of Sales and Services Tax has been deferred to a later date instead of June 1, the government announced today.

However, zero-rating of the controversial Goods and Services Tax will take effect on Friday, as previously announced by the Finance Ministry.

Traders were reminded that from June 1 they must reduce prices on products and services which formerly carried a 6% GST rate.

Last week, the government said it would re-introduce SST to partly offset a loss of revenue following its decision to do away with the GST.

The Pakatan Harapan-led government, which won the recent general election, said it would lower GST to 0% starting from June.

The consumption tax was introduced by the Najib Razak government in 2015 amid lower oil prices, and the estimated RM45 billion collected annually was said to have helped the government in its aid programmes.