Kuala lumpur: The expansion of the scope of the Sales and Service Tax (SST) can control the cascading effect on all goods because it is implemented in a targeted manner and not comprehensively which will burden the people, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He stressed that the expansion of the scope of SST only applies to some goods and not to most basic daily necessities of the people.

According to BERNAMA News Agency, Amir Hamzah explained that the government has assessed the need to reduce the burden on the right segments by choosing to expand the scope of SST to only certain goods. He emphasized the importance of selecting the right segments to ensure the implementation is beneficial rather than burdensome to the people. “Because we can choose, who says choosing is wrong? If we choose the right segment and it reaches the right target, then what we are doing is a better way,” he stated.

The finance minister highlighted that targeted implementation avoids an across-the-board approach that could burden the populace. He also pointed out the positive outcomes of such government efforts, including the increase in recipients of the Sumbangan Asas Rahmah (SARA) from 700,000 individuals to 5.4 million recipients. This assistance provides monthly financial support to aid in purchasing basic goods, funded by the government’s revenue.

Additionally, Amir Hamzah addressed the upcoming RON95 subsidy rationalisation, noting that discussions are ongoing to determine an appropriate mechanism. The government is considering using the Central Database Hub (PADU) system to set a threshold value for the subsidy. “There is a possibility that we will start with a high cut line because we think that for now, this is the only level we can set,” he mentioned. The decision is expected to be finalized before the end of the year, with plans to roll out the subsidy rationalisation of RON95.