Kota Kinabalu: The people are being unfairly burdened by the expanded Sales and Service Tax (SST) while the Government continues to ignore the real underlying issues, said Sabah Progressive Party (SAPP) Information Chief Chin Vui Kai.
He said the tax had been dubbed a “suka suka tax” as it keeps creeping into every aspect of life without addressing the root causes of economic challenges.
Chin said the Finance Ministry had cited the influx of foreign goods sold via online platforms as justification for maintaining the Low-Value Goods Tax (LVGT).
However, he argued that import tariffs and stronger border enforcement remain the proper and effective tools to curb unfair foreign online trade.
“Instead of acting at the source, the Ministry has somehow decided that it is easier to shift costs onto Malaysian traders and consumers,” he said in a statement.
Chin said businesses, especially small traders and shopkeepers in Sabah, were already feeling the pinch of rising operating costs and now face further pressure with SST being imposed on sales and rentals.
He pointed out that the Sabah United Chinese Chamber of Commerce (SUCCC) had previously raised concerns about the impact on traders, while the Federation of Malaysian Manufacturers (FMM) Sabah Chapter had highlighted the added burden of labour and compliance costs.
“Supply chain and logistics pressures are making it even harder for physical stores to stay afloat,” he said.
According to him, Sabah’s private sector has long been pressured by multiple Federal policies, including higher payroll, compliance and administrative costs, which continue to erode shop margins.
“Every extra charge on traders is eventually passed on to the rakyat, making daily necessities more expensive. The traders who can no longer cope with the new taxes and high costs will inevitably have to close shop,” he warned.
Chin stressed that the “suka suka tax” was not a solution but a clear sign of failed policy.
