The business community is bracing for the introduction of Sales and Service Tax replacing GST and the impact of the move by the Finance Ministry is yet to be known. Compared to GST which was set at 6% flat across all consumer products, SST will revert to the older system where categories were identified and subjected to the taxation.

Among the exempted categories were ICT products but since GST, these items were imposed with the 6% tax and saw prices for notebook and smartphones going up. Pikom, the computer association representing over 1000 members, would like to see the government to revert back the exemption for the industry.

In a statement, Pikom chairman Ganesh Kumar Bangah voiced his concerns on the impact on the ICT industry if it was to be taxed. Pikom is requesting for the ICT industry not be included in the SST scheme and instead reinstating tax relieves for MSC status companies. He adds that many of the Pikom members are anxious about the upcoming SST and are curious on the list of categories that will be included in the new taxation regime.

All eyes will be on the Ministry of Finance when the full list is announced prior to the implementation of SST come September 1. One of the more robust industries in Malaysia, ICT contributes 19% to the country’s GDP and is the key driver for the nation’s digital aspiration.