Double taxation in Sabah and Sarawak after GST?

Friday, November 22, 2013

Sabah and Sarawak could both retain their state sales and services tax (SST) even after the introduction of the Goods and services tax (GST) in 2015, following Sabah’s confirmation on the matter yesterday.

Sabah Chief Minister Musa Aman was quoted by the Borneo Post as saying that the SST, the prerogative for two East Malaysian state governments, will remain on top of the federal government's GST initiative.

“As such, the state government will continue to collect its revenue like usual because SST is a resource under the jurisdiction of the Sabah and Sarawak governments as stipulated under the federal constitution," Musa reportedly said during the state assembly sitting in Kota Kinabalu.

He also reportedly told the assembly that the Malaysia Tax Review Panel had informed him that the GST would not replace the SST in both Sabah and Sarawak.

“The sales tax which will be replaced by the GST are the ones under the federal level, through the Sales Tax Act 1972,” he was quoted as saying.

The SST, according to the report, is imposed on crude palm oil, slot machines and lotteries.

Msiakini