A LATE decision to raise the service tax just before Budget 2024 was tabled on Oct 13 led to an error in early documents for the government’s spending bill, the Finance Ministry explained yesterday.
Deputy Finance Minister Datuk Seri Ahmad Maslan said the error occurred in the Fiscal Review document of Budget 2024, which had been printed and distributed before Oct 13.
He said that a copy of the Budget 2024 fiscal review document was initially distributed and put on the table of 222 MPs in the Dewan Rakyat on Oct 12.
However, the Cabinet had agreed at noon on Oct 13 to increase the service tax rate (SST) from 6% to 8%.
“So, we did not have enough time to reprint the document before the tabling of the Budget later that day on Friday,” Ahmad said, referring to Budget 2024, which was tabled at about 4pm on Oct 13.
“We finished the Cabinet meeting at 12.30pm, how is it possible for us to print new copies of the document?” he said in reply to a supplementary question from Datuk Awang Hashim (PN-Pendang).
Awang had asked the Finance Ministry to explain if there was a correction made in the Budget 2024 fiscal review document.
Ahmad explained that the Cabinet’s decision to increase the SST from 6% to 8% would increase the government’s estimated revenue to RM3.45bil.
“The increase in revenue by RM3.45bil was decided at noon, and the tabling of Budget 2024 was at 4pm.
“We have made the correction, and the new versions have been distributed to all 222 MPs in the Dewan Rakyat.
“The document made available on the Finance Ministry website had been amended earlier, so we do not have to notify the MPs.
“The Budget 2024 speech also does not have any errors,” he added.
On an unrelated subject, Ahmad said that Datuk Armizan Mohd Ali will continue to be the acting Domestic Trade and Cost of Living Minister for the time being.
“He is the acting minister, so it does not mean there is no minister for the post,” he said.
Awang had earlier asked why the government had not filled the ministerial post as the rakyat was suffering from rising living costs.
The post became vacant following the death of Datuk Seri Salahuddin Ayub in July.