SUPP man calls fed govt to reconsider SST expansion amid rising living costs, business pressures

By DayakDaily Team

KUCHING, June 13: The federal government has been urged to review the expanded Sales and Service Tax (SST), which is expected to take effect on July 1.

In a press statement, Sarawak United Peoples’ Party (SUPP) Stakan chairman Dato Sim Kiang Chiok said the move is expected to significantly increase the cost of living and compliance burden on businesses across Malaysia, including Sarawak.

“While essential goods such as rice, vegetables, meat, milk, and medicines remain exempt from the sales tax, many non-essential items will now incur a five to ten per cent SST.

“Items affected include imported fruits, seafood like salmon and cod, essential oils, silk, industrial machinery (five per cent), and even road bicycles and antique artworks (10 per cent). These taxes will indirectly impact households and small businesses that rely on these products for daily operations or services,” he said.

He added that the scope of the service tax has also widened to the following:

“These come on top of other business cost pressures, such as the new Sarawak Labour Law effective May 1, which shortens work hours and increases maternity leave from 60 to 98 days, the minimum wage increase from RM1,500 to RM1,700, and the mandatory e-invoicing system for all businesses next year.

“With the potential removal of RON95 petrol subsidy looming, the combined impact will dampen entrepreneurship, reduce competitiveness, and increase living costs in Sarawak and nationwide,” he said.

Sim, who is also the advisor for the Sarawak Housing and Real Estate Developers’ Association (SHEDA), said that to compound matters, the resumption deadline of the US tariff impositions on worldwide goods—expected on early July 2025—has already rattled global markets, causing economic uncertainty and slowing global trade. For Malaysian businesses, this adds more pressure and clouds the outlook for 2025.

“With the cost of living rising and business sentiment weakening, the federal government should review these measures holistically and adopt a more balanced approach that supports small businesses and protects consumer welfare in these challenging times,” he said. — DayakDaily

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