‘Unit trust players await clarity on SST regime’

This article first appeared in The Edge Financial Daily, on July 24, 2018.
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KUALA LUMPUR: Unit trust players are awaiting clarity from the government on the sales and services tax (SST) to determine the impact it will have on their unit trusts.

Kenanga Investors Bhd chief executive officer cum executive director Ismitz Matthew De Alwis, who is also the president of the Financial Planning Association of Malaysia, said unit trust players remain uncertain whether the SST is applicable to income distribution from unit trusts or any investment products, ahead of its implementation on Sept 1.

“We are still struggling to have a clearer picture, although it (ministry of finance) has come out with the statement that expensive and luxury items would be subject to the  SST,” he told reporters after the opening of the Annual Signature Financial Planning Symposium 2018 yesterday.

De Alwis said previously, unit trust and financial planning products such as life insurance, general insurance and medical were not subject to the SST.

“We will be waiting for the basket of goods it has recommended to us before we can actually have a dialogue with the ministry,” he added.