KUCHING, May 24: SUPP Dudong branch chairman Wong Ching Yong has urged the Federal government to reconsider policies that risk further burdening the public, especially small and medium enterprises (SMEs) and microenterprises.
He voiced particular concern over the full implementation of the e-invoicing system scheduled for July 1, urging that it be postponed to avoid adding pressure on struggling businesses.
In a press statement, Wong appealed for the Federal government to show empathy toward the plight of SMEs and microenterprises by reviewing the e-invoicing policy.
He noted that many small businesses, particularly hawkers, have expressed deep concern over the financial strain the system could impose. These businesses would be required to invest in new software and hardware to comply with the policy; a burden that many of them can ill afford in the current economic climate.
He further suggested postponing the third phase, which mandates implementation for all businesses, and exempting those with annual turnovers below RM1 million from adopting e-invoicing. He proposed gradually lowering the threshold to RM500,000 only after the system is running smoothly.
“The Federal government has mandated that once the third phase begins, all traders must adopt e-invoicing, including small businesses and hawkers.”
“However, based on the feedback I’ve received, many hawkers still have very limited understanding of e-invoicing. They are concerned about the cost burden imposed by this new policy and fear penalties from the Federal government due to their unfamiliarity with how the system operates,” Wong said.
He added that learning to use the e-invoicing system, as well as purchasing the necessary software and hardware, represents a heavy financial burden for the hawkers.
With the current economic downturn, some hawkers have confided that their businesses are worsening, and the additional costs and potential fines leave them feeling completely hopeless.
“Some fellow hawkers have told me helplessly that they are considering closing down their businesses immediately, but what will they do to support their families afterward?”
Beyond the e-invoicing issue, Wong also raised concerns about other policies, including the recent expansion of the SST that came into effect on May 1. He pointed out that the broader scope of SST would inevitably increase production costs for many industries, with those costs ultimately passed down to consumers.
Wong suggested that the Federal government should reinstate the Goods and Services Tax (GST), as he believes it would better achieve a win-win situation for both taxation and the people, starting with a two per cent tax rate.
He also noted that that the GST is the main tax system adopted by almost all Western countries, including the UK, France, and Australia, as well as many Asian countries.
Aside from that, Wong noted that several Federal government policies planned for the second half of the year are expected to cause business costs to soar and drive up prices. These include the planned removal of RON95 petrol subsidies in June, a 14.2 per cent electricity tariff hike starting July 1, and the full removal of egg subsidies beginning August 1.
He said that although Sarawak’s electricity tariffs will not increase in tandem, and he hoped the petrol subsidies will be retained like diesel subsidies, as many essential goods in Sarawak come from Peninsular Malaysia.
“Given the above circumstances, if the Federal government insists on implementing these policies, both businesses and the people will be plunged into dire straits. Therefore, SUPP urges the federal government to think carefully and reconsider or temporarily suspend these policies.”
