SEPANG: Transport minister Loke Siew Fook will discuss maintaining the 6% sales and service tax rate for domestic flights with the finance minister.
Raised from 6% to 8% with effect from March 1, the new SST rate will not apply to food and beverages, telecommunication services, and logistics, including the delivery of goods and parking services. “Tourism is a big part of the economy as many international tourists come here to visit Langkawi and Penang,” Fernandes said.Loke also expressed his hope that the new 30-day visa-free policy for Chinese and Indian visitors could be extended beyond just a year.
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Sales and services tax hike not expected to cause sharp price increases, says Finance MinistryThe sales and services tax (SST) hike is not expected to cause sharp price increases that would lead to an economic shock, says the Finance Ministry. The statement also noted the 2% increase would affect discretionary activities and business-to-business services, while key essential services such as food and beverage, telecommunications, parking and logistics are exempt. Meanwhile starting March 1, electricity users over 600kWh will be affected by the sales and services tax (SST) hike from 6% to 8% among other services. The increased SST is set to generate an additional RM3bil revenue, said the Finance Ministry.
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