SST increase will affect B40,M40 despite exemption, says Dr Wee

Photo: FAIHAN GHANI/The Star

PETALING JAYA: Consumers in the B40 and M40 groups will be affected by the increase in the Sales and Service Tax (SST) despite being exempted directly, says says Datuk Seri Dr Wee Ka Siong

The MCA president said that although those who use less than 600 kWh a month in electricity would be exempted from SST, the fact that the 2% increase applies to commercial entities means that it would still affect those in the B40 and M40 groups.

“Those in the B40 group would still be affected by the increase in SST. Why? Factories, warehouses, and shops will increase their rent, as will the price of goods,” said Dr Wee.

“Who will bear the increased cost? The people. So this is the effect that it has on consumers,” he added in a video posted on his official Facebook account on Friday (March 1).

Dr Wee used a spoon as an example by saying that while its original price is RM5, the 2% SST increase would have a snowball effect.

He said this is because the factory that made the spoon, the warehouse that stores the spoon, and the shop that sells the spoon would all charge more at every stage.

“Can there be a guarantee that the price of the spoon would remain at RM5 after the tax increase,” he added.

“Now that the logistics cost incurs 6% (tax), bringing in raw materials from afar would cost more. And don’t forget that services like the tugboat and the container haulier would have a 6% SST,” said Dr Wee

“It will all add up! And who will be affected the most? The average consumer, ” he added.