1. HS 44.08: Wood Veneer & Laminated Boards
- Previous rate: 0% or 5%
- New rate: 10% SST
- Uses: Wall panels, cabinet linings, plywood, furniture
Impact:
- Home renovation costs increase 5-10%
- Custom furniture prices rise
- Example: Kitchen cabinet costs up RM500-RM2000
2. HS 44.09: Parquet Flooring Strips
- Previous rate: 0% or 5%
- New rate: 10% SST
- Uses: Hardwood/bamboo flooring
Impact:
- Flooring installation costs surge
- Example: 1,000 sq ft flooring up RM1,000-3,000
- Home decoration budgets affected
3. HS 70.07: Safety Glass (Tempered/Laminated)
- Previous rate: 0% or 5%
- New rate: 10% SST
- Uses: Car windshields, house glass doors, office partitions
Impact:
- Car windshield replacement: +RM100+ per repair
- Home glass installations: 5-10% price jump
- Office renovations more expensive
DIRECT CONSUMER IMPACTS:
- Housing affordability worsens
- Renovation projects become costlier
- Car maintenance expenses increase
- Furniture prices rise significantly
- Middle-income households hit hardest
ECONOMIC CHAIN EFFECT:
- Material costs increase 10%
- Contractors/manufacturers raise prices
- Property developers increase home prices
- End consumers bear final cost burden
GOVERNMENT RATIONALE:
- Targets "non-essential" materials
- Aims to increase tax revenue
- Claims basic construction materials (cement/sand) remain 0% SST
REALITY CHECK:
- Safety glass (car windshields) = necessity
- Wood flooring = basic housing material
- Policy contradicts "targeted luxury tax" claim
- Lower/middle-class bears disproportionate burden
LONG-TERM CONSEQUENCES:
- Home ownership becomes less affordable
- Renovation/repair delays increase
- Informal cash economy may grow
- Consumer spending power decreases