KOTA KINABALU, Friday, 12 Sept 2025:
The rakyat are being burdened with an expanded Sales and Service Tax (SST), while the real issues are being ignored.
What is imposed has already been called a “suka suka tax” because it keeps creeping into every corner of life without addressing root problems.
The flood of foreign goods sold through online platforms has been cited by the Ministry of Finance as justification for continuing Low-Value Goods Tax (LVGT), but import tariffs and robust border enforcement remain the correct and effective tools to stop 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.
Businesses such as shopkeepers and traders in Sabah are squeezed by rising operating costs and additional SST on sales and rentals, as warned by the Sabah United Chinese Chamber of Commerce (SUCCC), while the additional burden of labour and compliance costs have been highlighted by the Federation of Malaysia Manufacturers (FMM) Sabah Chapter.
Supply chain and logistics pressures are making it even harder for physical stores to stay afloat.
Sabah’s private sector has already been pressured by multiple federal policies, including rising 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.
The “suka suka tax” is not a solution but is proof of failed policy.
Chin Vui Kai
Information Chief
Sabah Progressive Party (SAPP)