KUALA LUMPUR: The sale of goods and provision of services will have separate tax rates under the Sales and Services Tax (SST) and these rates cannot be combined to become 16 per cent, said International Trade and Industry Deputy Minister Dr Ong Kian Ming.
The Bangi MP said some members of the public were confused about the rate to be imposed under the SST regime and concluded it was 16 per cent.
“I feel there’s a lot of confusion on the issue of SST, whereby the sale of goods would be taxed at 10 per cent and provision of services at six per cent. The taxation is carried out separately… so they cannot be combined to become 16 per cent,” he explained.
Ong was speaking to reporters after the opening of the first meeting of the first session of the 14th Parliament by the Yang di-Pertuan Agong, Sultan Muhammad V, here today.
Yesterday, Finance Minister Lim Guan Eng said the new SST Bill was expected to be passed in Parliament next month, paving the way for the reintroduction of SST on Sept 1. – Bernama