Finance minister: Luxury goods should be subject to SST

KUALA LUMPUR (July 20): The goods to be exempted from the Sales and Service Tax (SST), which include big-ticket items, posted on the Royal Malaysian Customs Department’s website, are still at the proposal stage, Bernama reported today.

“Although the list which was released by JDKM (Customs Department) is just a proposal, the MoF is of the view that expensive items which are luxurious – big ticket items – should also be subjected to SST,” finance minister Lim Guan Eng (pictured) said in a statement today.

Some of the goods listed by JKDM are big ticket items such as airplanes, luxury yachts, passenger ferries, helicopters, spaceships, and skiing equipment.

Lim also said that as the list is in the proposal stage, the public can still give their views about adding or dropping goods to be exempted from SST.

Lim said in the Dewan Rakyat yesterday that the SST would cover only 38% of the Consumer Price Index basket of goods in comparison with the 60% from the Goods and Services Tax (GST).

He explained that RM23 billion collected by GST can be returned to the people to help ease their burden, spur private consumption, reassure investor confidence and stimulate economic growth.