SST for handphones revealed at 5% while electronics go for 10% for slight price increase after 1 September 2018

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A recently revealed SST (Sales and Service Tax) guidance list from MySST has revealed that smartphones and other handphones will get a 5% SST. While some said that previously before GST, handphones, tablets and laptops were exempted, this list also goes on to reveal that other electronics will get a 10% SST as well. SST is expected to be implemented starting from 1 September 2018 so there is at least a week to get a new smartphone or other electronics like cameras, laptops and audio equipment before we see any price increase due to SST.

Nonetheless, while this SST for handphones is seemingly close at 5% compared to the previous 6% GST it should be noted that the price increase from SST should not be as high as the previous 6% GST tax regime. This is mainly because the 5% SST is applied to manufacturers once while GST is applied to all levels of financial transactions including when we as consumers buy a new smartphone. 

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