Deputy Finance Minister Amiruddin Hamzah said a study by the domestic trade and consumer affairs ministry showed that the prices of 70% of the 417 items, comprising six categories, had gone down.
“A study was carried out by the ministry on the implementation of SST on price points of 417 items consisting of six categories, namely fresh goods (136), dry goods (25), packaged goods, cans, packs and bottles (59), beverages (25), food and baby items (49) and hygiene items (23).
“From a price change analysis done by comparing average prices between May 2018 and September 2018, 70% (or 291 items) recorded a decrease in prices, 27% (115 items) had an increase and 3% (11 items) remained unchanged,” he said when winding up the debate on the Finance Bill 2018 at the Dewan Negara today.
However, Amiruddin said the decline in prices was not being highlighted, while the price increase in 27% of the items had created a perception that the prices of all goods had increased.
He said the government had collected RM4.5 billion in SST from Sept 1 to Dec 17 this year.
“We aim to collect RM22 billion in SST in 2019, namely RM13.8 billion in sales tax and RM8.2 billion in service tax,” he said.
Meanwhile, Amiruddin said the government is expected to lose RM26.9 million in revenue a year following the move to increase the tax relief amount from RM6,000 to RM8,000 on net savings in the National Education Savings Scheme (SSPN).
However, he said the revenue loss for assessment years 2019 and 2020 was worthwhile as it would encourage more Malaysians to save their money under the scheme.
“In the assessment for the year 2017, the total number of taxpayers who claimed tax relief on net savings in SSPN was 242,027, with a total claim amount of RM630.3 million.
“That was when the tax relief amount was RM6,000. By raising the amount to RM8,000, we expect more will save their money in SSPN,” he said.
Meanwhile, the Senate passed six Bills, namely the Income Tax (Amendment) Bill 2018, the Labuan Business Activity Tax (Amendment) Bill 2018, the Customs (Amendment) (No 2) Bill 2018, Excise Duty (Amendment) Bill 2018, Sales Tax (Amendment) Bill 2018 and Service Tax Bill (Amendment) 2018.