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telegram批量拉人(www.tel8.vip)_Govt loses RM4.8bil from SST exemption on purchase of vehicles

admin2022-06-1811

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,Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said the SST exemption had been extended for three times since, and the ministry is currently studying the impact and weighing its next action

PUTRAJAYA: The current sales and service tax (SST) exemption for the purchase of vehicles, which was first announced on June 5, 2020 and is set to end on June 30, 2022, has resulted in the loss of RM4.8bil in revenue to date.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said the SST exemption had been extended for three times since, and the ministry is currently studying the impact and weighing its next action, Bernama reported.

“The revenue forgone of RM4.8bil is a huge amount which could be used to channel to help the people in their essentials.

“We need to thoroughly study the matter. If we decide to extend for another three months, we would lose at least RM1.2bil and if we were to extend for another six months, we would lose about RM2.5bil,” he said.

Tengku Zafrul was speaking to reporters at the sideline of the Labuan International Business and Financial Centre event to unveil its 2022-2026 strategic roadmap.

“We need to thoroughly study the matter. If we decide to extend for another three months, we would lose at least RM1.2bil and if we were to extend for another six months, we would lose about RM2.5bil,” Tengku Zafrul said.

He noted that the government is also in need of more revenue to provide subsidies for the rakyat in order to curb inflation.

On the interest rate hike of 75 basis points by the Federal Reserve on Wednesday, he said it was largely expected and the hike had already being factored in by the markets as inflation in the United States is quite high at above 8%.

“Any move by developed countries such as the United States, Europe and China would definitely have a global impact, and Malaysia as an open economy is not excluded.

“The expectations now is that the US economy would still grow but is expected to be slower. However, we will continue to monitor the impact of this development on Malaysia’s economy,” he said.

He said Malaysia’s interest rate is still low, hence the need to consider the necessary monetary and fiscal intervention to protect the people from the effect of high inflation.

Tengku Zafrul said although the global economic move would have an impact, Malaysia’s economic fundamental is still strong to cushion it.

On the ringgit’s movement due to the US interest rate hike, he noted that the local currency somehow strengthened on Wednesday.

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