PETALING JAYA: Putrajaya says it will re-introduce the sales and services tax (SST) on June 1 to partly offset the shortfall in revenue following its decision to do away with the goods and services tax (GST).
The Pakatan Harapan-led government, which won last week’s general election, said yesterday it would lower the GST to 0% starting from June.
It had pledged in its election manifesto to do away with the consumption tax, which was introduced by the Najib Razak administration in 2015 amid lower oil prices.
The Najib administration had said the RM45 billion collected annually through the GST helped the government in its aid programmes.
In a statement today, the finance ministry said the shortfall in revenue would be supported by specific revenue and expenditure measures that will be announced soon, including the reintroduction of the SST.