In what seems to be a radical shift in Malaysia’s history, the newly installed Malaysian government under the leadership of comeback Prime Minister, Tun Dr. Mahathir Mohammad, is getting rid of the old and bringing in the new. Ironically however, the government is getting rid of the recently enforced GST and bringing SST – an old and familiar system – onto the tax scene again!
Though the country is still enjoying a zero-rated GST period which began on the 1st of June 2018, the time of enforcement for SST is now here and there are differing opinions on the effects of bringing such a tax back. While history was made in the recent election, everyone including individuals and businesses are now on their toes concerning the implementation of SST and there are those who wonder if such a change or rather, a reversal of change, is the best move for Malaysia in the long-run.
Only time will tell if SST is in fact the best choice for the country. However, individuals and businesses need not wait passively for SST to be in full force before learning how to handle its implementation. Instead, now is the time for getting sufficiently equipped, trained and prepared to fully understand SST and ensure that we avoid any unnecessary hurdles.
It is a known fact that even under the reign of GST – an arguably more transparent form of tax according to many – there were many who were left in the dark about its implementation and consequentially, found themselves being victims of those who knew the GST mechanism inside and out! In such a period of transition, there are even more opportunities for such cases and Malaysians need to ensure they are well-aware and prepared to maneuver through such a period to reap its potential benefits and save themselves from unnecessary costs.
Although many are reassuring the people of SST and its comparative advantages to GST, let’s get ourselves ready to ensure it is implemented rightly and to determine if it truly is the better option. Only those who are well-prepared will be able to do this so let’s do our part to ensure we are not left behind!
References:
- Elalingam, S 2018, ‘How GST and SST work’, New Strait Times, 20 July, viewed 7 August 2018, <https://www.nst.com.my/opinion/columnists/2018/07/392556/how-gst-and-sst-work>.
- Amarthalingam, S 2018, ‘MoF: new SST will involve less manufacturers than GST’, The Edge Markets, 7 August, viewd 8 August 2018, <http://www.theedgemarkets.com/article/mof-new-sst-will-involve-less-manufacturers-gst>.
- Zainudin, F 2018, ‘Guan Eng admits GST more transparent than SST’, Free Malaysia Today, 19 July, viewed 8 August 2018, <http://www.freemalaysiatoday.com/category/nation/2018/07/19/guan-eng-admits-gst-more-transparent-than-sst/>.
Melissa Liew has a Bachelor’s Degree in Accounting from Swinburne University of Technology and is now pursuing her postgraduate studies in ACCA there. She is currently also doing content writing for MRS Management.
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