27 June 2013

No decision yet on GST

The government is still undecided when to table the goods and services tax bill (GST) as it is still under study.

Second finance minister Datuk Seri Ahmad Husni Hanadzlah said that based on a 2015 simulation, the government would collect RM20 billion under the existing sales and service tax. But if this were replaced by the GST, the government's revenue would increase by RM 6 billion for 2015.

He said that although it will bring additional revenue and the country's private sector economy will grow, the authorities are still studying the impact of the GST on the rakyat.

"We want to see how much additional the rakyat will have to pay, if there is more to be paid. We are not introducing a new tax and it does not mean that the rakyat will have to pay RM6 billion more in taxes based on the 2015 simulation. That is not how it works."

He said the GST will net taxes from those who try to evade other taxes and hailed it as a more efficient tax system.

The impact is expected to be minimal on the lower-income group as 20 groups of basic items will draw no GST, Husni told reporters.

Husni was elaborating on a question he had been asked earlier by Setiawangsa MP Datuk Ahmad Fauzi Zahari in the House. Fauzi wanted to know to whether the government had properly informed the people how the GST, slated to be set at 7%, would affect them if imposed. – June 27, 2013.


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