Finance Ministry Officially Confirms SST Will Replace GST
It will cushion the revenue shortfall from GST.
On Thursday, 17 May, the Finance Ministry released an official statement with regards to re-introducing the Sales and Services Tax (SST) to offset the shortfall in revenue which is expected after the Goods and Services Tax (GST) will be zero-rated from 1 June
"The shortfall from GST which is to be zero-rated effective 1 June 2018 will be cushioned by specific revenue and expenditure measures that shall be announced in due course," read the official statement posted by the Ministry.
"The Sales and Services Tax (SST) will be reintroduced. Expenditure reduction will begin with rationalisation, efficiency measures and reduction in wastages," it added.
The re-introduction of SST is part of the fiscal reform initiative by the newly formed Pakatan Harapan government
Here's the full statement from the Finance Ministry announced today: