Idris Ahmad (PN-Bagan Serai) said the increase from 6% to 8% will have a ripple effect on supply chains, and additional costs will likely be passed to consumers.
He said this would lead to a rise in prices even though food items and telecommunications services were exempt from the increase.
“What guarantee can the government provide that the increase (in SST) will not raise prices, especially those of essential goods?” he said during a debate on the supply bill in the Dewan Rakyat.
Yesterday, former prime minister Ismail Sabri Yaakob (BN-Bera) said the reintroduction of the goods and services tax (GST) would have been a better alternative to raising the SST.
On a separate matter, Idris urged the government to disclose the value of the assets being returned by a special purpose vehicle (SPV) under the finance ministry to Lembaga Tabung Haji.
In 2018, Tabung Haji transferred non-performing assets worth about RM19.9 billion to the SPV, Urusharta Jamaah Sdn Bhd, to be rehabilitated.
Before the restructuring, Tabung Haji’s liabilities exceeded its assets by RM10 billion, which prevented the pilgrimage fund from paying dividends to depositors.
The Tabung Haji Act 1995 stipulates that dividends cannot be paid if Tabung Haji’s debts or liabilities exceed its existing assets.
Last month, Prime Minister Anwar Ibrahim announced that the SPV would return the assets to Tabung Haji.