PARLIAMENT | The government is projecting SST collection to amount to RM22 billion for 2019, said Deputy Finance Minister Amiruddin Hamzah.

Amiruddin said the reintroduction of the SST tax system to replace GST had greatly helped raise the disposable income of the people.

"In general the reintroduction of SST did not result in an increase in the price of goods and services. 

"For example the Consumer Price Index (CPI) did not show any significant increase," he said during the question-and-answer session at the Dewan Negara today.

Amiruddin was replying to a question from senator Donald Peter Mojuntin, who wanted to know the revenue expected under the SST system and whether it was effective in reducing the cost of living.

The deputy minister added that the coverage and scope of SST are much smaller compared to the GST, as various types of consumer goods and basic necessities, such as food items, are not subject to sales tax.

On the service tax, he said it was only imposed on selected services.

In response to Mojuntin's supplementary question on how the government would address the shortfall of over RM20 billion – with the RM44 billion previously collected under GST – Amiruddin said Putrajaya would work on making up for the revenue shortfall.

"The government is optimistic that if the economy is well managed, investors will be convinced and this will encourage them to invest, thus creating more business opportunities which will help raise tax collection,” he added.

- Bernama