Datuk Jonathan Chai added that the two key issues with the reintroduction of GST in Malaysia would be for the government to consider the right time to implement it and at what rate.
KUCHING (June 4): The Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) is all for the reintroduction of the Goods and Services Tax (GST).
ACCCIS secretary-general Datuk Jonathan Chai said GST is a fairer and more comprehensive tax regime as individuals are expected to pay more tax only if they want to consume more.
He added that the two key issues with the reintroduction of GST in Malaysia would be for the government to consider the right time to implement it and at what rate.
“The reinstatement of GST should be seen as a part of holistic assessment of Malaysia’s fiscal position and an important reform of our tax systems.
“It must be easily manageable and does not increase the cost of doing business besides being able to strengthen our country’s fiscal position,” he told The Borneo Post yesterday.
He was commenting on the Prime Minister’s recent call to reintroduce GST at a rate that would not burden the people but still help widen the country’s revenue base in order to lower the government debt ratio and accelerate the pace of fiscal consolidation.
Chai pointed out that Malaysia needs a broad-base tax system to generate more income to cover the country’s deficit.
He said Malaysia simply cannot sustain the current system with “16 taxpayers supporting the rest of the 84 persons”.
“At the same time, the policy-makers should ensure that the reintroduction of GST would not hit the B40 group too hard especially when we are experiencing inflationary pressures in the cost of living.”
According to the business leader, the rate of GST may be reintroduced at a lower rate than the six per cent set in the previous round.
He suggested: “Perhaps three or four per cent.”
Chai said the government could gradually raise or revise the GST rate in tandem with the recovery and growth of the country’s economy.
“As we all know, during the last round of GST, the common issue encountered by the business operators was the delay of refund. I think the government should learn from the previous experience and find ways to address the problem before the reintroduction of GST.
“It is vital for the government to engage and have sufficient consultations with the industries and consumers in meaningful ways before the reintroduction of the GST,” he added.
from Borneo Post Online https://bit.ly/3GMCa4R
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