Guan Eng contradicts Azmin Ali: Govt did not say prices won’t increase after SST

(NST) – The government recognises there are weaknesses within the Sales of Services Tax (SST) system, as it was implemented only two months after the Goods and Services Tax was abolished.

Finance Minister Lim Guan Eng said however, the government was able to make sure the impact of price hikes today was lower than during the previous taxation system.

“Through the implementation of SST, the government did not say prices would not increase. It (price increase) is happening but the impact is lower.

“This is proven through the inflation rate that was recorded in 2018, which is one per cent compared to 3.7 per cent during the GST era.

“The challenge now is to ensure that the cost of living will be reduced and the people can benefit from a lower Consumer Price Index (CPI),” he said during a press conference after launching Razer’s new headquarters here today.