DCCI: Vital for nation to have enough revenue for devt post zero GST

KUCHING: The abolition of Goods and Services Tax (GST) should have been countered by a better approach to ensure that the nation continues to have sufficient revenue for development.

In stating this, Dayak Chamber of Commerce and Industry ( DCCI) president Datuk Joseph Salang Gandum fears that the country would stand to lose much in income if the new approach is not right.

“Most of the income from taxation is for covering operation cost and this aspect should be the cause of concern for us all,” he said.

“As a former MP of a rural constituency, I foresaw the collection from GST as a source of development fund,” he said when met at the opening of the Sape Workshop officiated by Minister for Tourism, Arts, Culture, Youth and Sports Datuk Abdul Karim Rahman Hamzah at 11 Ridgeway, Off Jalan Tiang Swee here yesterday.

Salang, who is also former Julau MP and Parti Rakyat Sarawak ( PRS) secretary-general, however said since the Pakatan Harapan government is giving itself three months from the May 9 general election to fulfil its election promises, it would not be fair to comment yet on the implications and results of the abolition of the GST.

But he hoped that since the GST is now zero rated, traders would decrease prices on goods and services by six per cent.

“It remains to be seen how the new government will re-implement the Sales and Services Tax ( SST) and whether its approaches are most effective in filling the vacuum left by the GST system,” he added.

The abolition of GST is among the 10 things which the new government pledged to impose within 100 days after winning the GE14 on May 9.

The Finance Ministry had announced that GST imposed on goods and services would be zero rated starting June 1.