Tan Teik Cheng: 8% new SST on logistics will raise consumer prices now

The new service tax rate, now at 8%, including logistics services, will compound consumer prices, warns MCA vice-president Tan Teik Cheng. He criticizes Transport Minister Anthony Loke for not addressing the matter sooner.

Tan Teik Cheng on SST

Tan Teik Cheng urges the Finance Ministry to exempt logistics services from the Sales and Service Tax hike to prevent a domino effect on costing. The government recently implemented various taxes, including a 10% Low-Value Goods Tax for online sales and an 8% Digital Services Tax, as part of efforts to enhance financial resilience and reduce the budget deficit.