PETALING JAYA: According to Datuk Seri Dr Wee Ka Siong, consumers in the B40 and M40 groups will feel the impact of the Sales and Service Tax (SST) increase, despite not being directly exempted.
The MCA president highlighted that while those using less than 600 kWh of electricity per month are exempt from SST, the 2% rise in commercial entities would indirectly affect individuals in the B40 and M40 groups.
Dr Wee expressed concern, stating, “The B40 group will still be affected by the SST increase. Why? Because factories, warehouses, and shops will raise rent prices, as well as the costs of goods.”
He continued, “The burden of these increased costs will ultimately fall on consumers. This is the impact it will have on consumers,” in a video shared on his official Facebook account on Friday (March 1).
Using a spoon as an illustration, Dr Wee explained that while the original price may be RM5, the 2% SST hike would have a ripple effect.
He elaborated, “The factory manufacturing the spoon, the warehouse storing it, and the shop selling it will all add extra charges at each stage.”
Dr Wee questioned, “Can we guarantee that the spoon will still be priced at RM5 after the tax increase?”
Highlighting the broader impact, he added, “Now, with a 6% tax on logistics, bringing in raw materials from a distance will be more expensive. Services like tugboats and container hauliers will also incur a 6% SST.”
He concluded, “These costs will accumulate! And who will bear the brunt of it? The average consumer,” emphasizing the repercussions.
