Ahmad: No discussion on GST yet
SHAH ALAM: There has not been any discussion or meeting on the re-implementation of the Goods and Services Tax (GST) since the unity government was established, said Deputy Finance Minister Datuk Seri Ahmad Maslan.
“The government has not discussed it (GST). There has been no decision on the matter. For the time being, we are continuing with what is being implemented,” he said.
However, Ahmad said the GST was beneficial, with 83 per cent of countries in the world using the taxation system.
“Based on studies conducted (on GST) by ordinary, as well as world-renowned universities, no one says GST is not good. If it is not good, why do 83 per cent of countries in the world implement it?” he said after officiating at the National Accountant Convention 3.0 here yesterday.
Ahmad said the government was examining ways to increase revenue without having to impose new taxes.
“Efforts in that direction are being made, and I’ll give a small example, such as if we can reduce leakage in terms of smuggling. Some say the tax evasion from these cigarettes is approximately RM5 billion.
“So if we tighten everything related to tax evasion and cigarette smuggling, then without any new taxes, the government can get an increase (in income) of RM3 billion to RM5 billion.”
On the increase in the overnight policy rate (OPR), Ahmad suggested that Bank Negara Malaysia (BNM) provide information to the people about any new announcement.
“I have received a briefing from them (BNM) and I mentioned to them the community must have a better understanding of the relationship between the OPR, inflation, exchange rate and economic growth.
“The people may not clearly understand the matter because it is not their field, so it is BNM’s duty to explain to the people before making any announcement.”