2027 Budget: Relief on electricity costs, SST
KUALA LUMPUR: Mall operators are urging the government to consider measures to ease rising operating costs for shopping malls, including extending electricity cost protection under the Automatic Fuel Adjustment (AFA) mechanism and reducing the Sales and Service Tax (SST).
Prime Minister Datuk Seri Anwar Ibrahim has indicated that the Malaysian government is exploring ways to make the tax system more progressive, potentially incorporating selected features from the Goods and Services Tax (GST) into the existing Sales and Service Tax (SST) framework. Mall operators, including Sunway Malls group managing director H.C.
Chan, have urged the government to extend electricity cost protection under the Automatic Fuel Adjustment (AFA) mechanism and reduce the SST to ease rising operating costs faced by the retail industry. Chan emphasized that shopping malls require significant power for various facilities, and a lower tax burden could provide businesses greater flexibility in managing expenses while supporting consumer spending.
He suggested that reducing the SST from 6.0% to 3.0% for a certain period could help alleviate pressure on businesses and consumers, particularly as households remain sensitive to the rising cost of living.
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