Kota Kinabalu: With the full implementation of the Sales and Services Tax (SST) in Sabah just around the corner, the state government must explain what measures are in place to protect low-income groups from the expected rise in living costs.
Sabah Umno information chief Datuk Suhaimi Nasir said the absence of clear strategies to assist vulnerable communities is worrying, especially as nearly 40pc of households in the state fall under the B40 category.
“Many depend on informal work or subsistence economies. The SST could erode their already limited purchasing power — particularly in rural areas,” said Suhaimi, who is also Libaran MP, in a statement on Friday (June 20).
window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});The tax rollout, set to begin on July 1, was introduced under Budget 2025 by Prime Minister Datuk Seri Anwar Ibrahim. Under the new framework, a 5pc–10pc sales tax will apply to selected non-essential goods, while the service tax is being extended to sectors such as rental and leasing, construction, finance, private healthcare, private education, and beauty services.
Suhaimi noted that Sabah remains one of the states most affected by development imbalance and income inequality — making it all the more urgent for the government to provide strong buffers against the impact of new taxes.
While he acknowledged the importance of SST in boosting national revenue, he said it must be balanced with fair and inclusive support policies to prevent it from becoming a burden to ordinary Sabahans.
He urged the state government to implement targeted subsidies, expand the scope of price controls on essential goods, and provide conditional cash assistance to help households cope.
“The revenue collected must be returned to the people through tangible improvements in rural infrastructure — such as roads, clinics, clean water, and internet coverage — especially in interior areas still left behind,” he said.
“Sabahans deserve transparency on how public funds are spent and how these measures directly benefit their daily lives. Trust is not built on slogans, but on action that prioritises those most in need.”
