SHAH ALAM - Former finance minister Lim Guan Eng said he was confused over the inclusion of beauty services in the expanded service tax, scheduled to take effect on July 1.
He warned that such a move could alienate women voters.
"The women’s vote is very important, the government cannot afford to offend them," he was reported as saying,
According to Chinese-language daily Sin Chew Daily, having overseen the reinstatement of the sales and service tax (SST) in 2018, Lim urged the federal government to postpone implementing the revised SST.
On Monday, the Finance Ministry announced a five per cent to 10 per cent tax on non-essential goods starting July 1.
The service tax will now cover sectors such as rent, leasing, construction, financial services, private healthcare and education.
Lim also questioned the decision to impose a five per cent tax on imported fruits like apples and oranges.
"We understand that the government is doing this to encourage the consumption of local fruits, but certain imported fruits like apples and oranges should not be taxed,” he argued.
Since the announcement, various associations have voiced concerns about the implications for service availability, pricing clarity and operational readiness, particularly in sectors like healthcare and education.
These industries served a diverse clientele, including foreign workers, expatriates and international students, who may be disproportionately affected by the new taxes.