Claims of higher cost of business with SST due to lack of clarity, says FMM

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The country's largest manufacturer's group says it will help investigate concerns highlighted by members.

PETALING JAYA: The country’s largest manufacturer’s group has explained its claim that the cost of doing business escalated after the introduction of the sales and services tax .

It added the FMM-MIER Business Conditions Survey 2H2018, which raised the issue of the SST’s impact, was carried out in the third month of tax’s implementation. FMM said Putrajaya had informed it of its commitment to address technical implementation issues, reduce costs through tax deductions and further expand the exemption list to include raw materials and components used in manufacturing non-taxable goods to avoid increases in cost of doing business.

“With SST, cash flow will improve as businesses do not need to pay input tax upfront but instead can apply for sales tax exemption on their raw materials, components and packaging.”

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