SME Sarawak urges practical GST-like tax features

What happened

Jordan Ong Chung Siang, president of SME Association of Sarawak, said any Goods and Services Tax-like features added to the existing Sales and Service Tax framework must remain practical and manageable for micro and small businesses.

He spoke on Aug 20 in Kuching, responding to the government's plan to reform Malaysia's tax system.

Why it matters

SMEs form the backbone of Malaysia's economy. New tax features could raise compliance costs and administrative burdens.

Ong said SMEs understood and supported the government's objective of making the tax system more efficient. But he stressed that implementation must not overwhelm smaller firms.

Impact on Sarawak

Sarawak's business community relies heavily on micro and small enterprises, particularly in rural areas and the service sector.

A complex tax framework could disproportionately affect these businesses, which often lack dedicated accounting and compliance staff.

Government's tax reform

The government is considering adopting GST-like features within the current SST system rather than reintroducing GST as a separate tax.

This approach aims to broaden the tax base while avoiding the political and economic backlash seen during the previous GST implementation.

SME concerns

Ong highlighted the need for clear guidelines, transitional support, and digital tools to help small businesses adapt.

He also urged the government to consult SME associations before finalizing any tax design changes.

What's next

SME Sarawak plans to submit formal feedback to the government on the proposed tax features.

Ong said the association will continue to engage with policymakers to ensure the final framework supports business growth and compliance.