GST to help make economy strong, competitive — Najib
KUALA LUMPUR: The introduction of the Goods and Services Tax (GST) will not only help make the conomy strong and competitive, it will also reform the tax system to make it more transparent and efficient, said Prime Minister Datuk Seri Najib Tun Razak.
He said the GST was also fair as those who tried to evade paying it would be easy to track down.
“Although there are 12 million workers in Malaysia, only 1.2 million pay taxes. Thus 28 million Malaysians depend on the 1.2 million tax payers. This ratio only exists in Malaysia,” he said at a briefing session on the GST here yesterday.
Najib said raising taxes would result in more problems and because of this the government introduced the GST which was fairer.
“The consumers will be taxed only if they buy goods and services. The government has considered the burden on the rakyat before deciding to introduce the GST,” he said.
He said the GST was not an additional tax but a replacement for the sales and services tax.
The government, he said, has estimated that if prices were to increase with the introduction of GST, they would only be by 1.8 per cent.
The government would undertake strong enforcement action and increase the number of enforcement officers for the Ministry of Domestic Trade, Cooperatives and Consumerism, he said.
“Action will be taken against those who increase the prices arbitrarily,” he said.
Najib also reprimanded companies which had not register for GST despite the government’s incentives for them to do so.
“Don’t rush to register at end of March 2015. Plan early to ensure the smooth implementation of the GST,” he said.
Najib also explained to the 2,000 odd participants why the GST
Although there are 12 million workers in Malaysia, only 1.2 million pay taxes. Thus 28 million Malaysians depend on the 1.2 million tax payers. This ratio only exists in Malaysia.
Datuk Seri Najib Tun Razak, Prime Minister
was good, how it would spur the country’s economic growth and in attaining developed nation status.
He said the GST was not new as it had been mentioned by three previous Finance Ministers including Opposition Leader Datuk Seri Anwar Ibrahim, when he tabled the budget on Oct 30, 1992.
“We must have strong financial resources. Each time we present the annual budget, there must be the bonus element, or else the budget is considered not good.
For a month’s bonus, the government has to fork out about RM5.6 billion. It is the government’s responsibility to look after the 1.5 million civil servants and 300,000 pensioners. The country needs enough resources,” he said.
Najib said to sustain the country’s financial stability, the implementation of GST was vital to increase revenue stream.
Najib said out of a workforce of 12 million people, only 1.2 million employees were paying taxes and the revenue collected was benefiting 28 million Malaysians.
“Among others, tax revenue was necessary for the provision of health services, as there was always a pressing need to increase hospitals and beds for the people,” he said.
However, Najib admitted that the GST would result in a slight increase of 1.8 per cent in the price of certain goods.
But, he assured that the increase would not involve essential goods and services and, strict enforcement would be in place with additional back up of enforcement officers from the Ministry of Domestic Trade, Cooperative and Consumerism.
“The public can also lodge reports to the government against unscrupulous traders who raise prices so that action can be taken against them,” he said, adding that recipients of the 1Malaysia People’s Aid ( BR1M) should also use their one-off handouts wisely.
Beginning next year, the government would top up an additional RM300 to the current payment of RM650 to alleviate the plight of the low-income following the introduction of GST.
Najib also advised traders to be GST ready by registering their businesses as soon as possible and not wait until the last minute. — Bernama