Yeah: Overall, there will be a lower tax burden which translates into higher disposal income for households. It is positive for domestic demand but negative for fiscal strength due to lower government revenue.
PETALING JAYA: The narrower tax coverage for services under the sales and service tax (SST) come Sept 1 is set to be a double-edged sword, as it will boost consumer demand while at the same time lowering government revenue.
Effective next month, the scope of the proposed tax model will be implemented based on the Service Tax Act 1975, said Finance Minister Lim Guan Eng at the second reading of the proposed Service Tax Bill 2018 in Parliament yesterday.
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