Expanded SST offers nation buffer in tough times, say economists

Free Malaysia Today

The tax revenue increase will ease debt, protect vulnerable groups, and prepare for global shocks.  Read More:  https://www.freemalaysiatoday.com/category/nation/2025/06/21/expanded-sst-offers-nation-buffer-in-tough-times-say-economists  Laporan Lanjut:  https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/06/21/peluasan-sst-penampan-negara-hadapi-tempoh-sukar-kata-pakar-ekonomi  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #SST #GST

Transcript

00:01The expansion of the sales and service tax set to take effect next month will strengthen

00:06the government's fiscal buffer amid rising global uncertainty fueled by wars, trade tensions

00:12and shifting U.S. policies.

00:15Economists say the move could help reduce national debt, raise tax revenue and create

00:19more fiscal space for spending on critical areas such as healthcare, education and targeted

00:25assistance for lower-income households.

00:28They also claim it is a safer and less costly option compared to reinstating the goods and

00:33services tax which would take time and effort to restart.

00:37Bajai Bardai of the Malaysia University of Science and Technology said the SST expansion is not

00:44aimed at cost savings but at boosting revenue to help narrow the country's budget deficit.

00:51He said the government expects SST collection to hit 52 billion ringgit this year, surpassing

00:56the 29 billion ringgit in its first year and even GST's peak of 42 billion ringgit and

01:02believes SST can be developed into a better tax system than GST.

01:06Meanwhile, Sunway University's Yakim Leng pointed out that the country's tax to GDP ratio presently

01:13hovers just above 12 percent, one of the lowest levels in decades.

01:19He said that as the country can no longer rely on petroleum revenue or shrinking income taxes,

01:25it needs sustainable and stable revenue sources, and expanding the SST is a step in the right

01:30direction to gradually raise revenue and avoid a higher deficit.

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