Deputy Finance Minister Lim Hui Ying said the overall impact of the expanded Sales and Service Tax (SST) on households is expected to be “low and manageable,” according to early Ministry of Finance projections.
Govt Uses SST Gains to Fund Subsidies, Avoid New Debt
Speaking in the Dewan Negara, she explained that exemptions and relief measures were introduced to ensure fairness, with the tax burden borne by those most able. The expanded SST, effective July 1, 2025, is projected to raise an additional RM5 billion this year.
Lim stressed that the extra revenue strengthens government finances without higher borrowing and supports subsidies for essentials through initiatives like Sumbangan Asas Rahmah (SARA) and Sumbangan Tunai Rahmah (STR).
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