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KUALA LUMPUR: A deputy from Pakatan Harapan says he misses the goods and services tax (GST), and tells Dewan Rakyat that today it is a much better tax system than the current sales and service tax (SST).
Tebrau MP Steven Choong said one good thing about GST was that it was easier for the Internal Revenue Department and the Customs Department to monitor, and more difficult for people to “run away” from the tax.
“As an accountant, I still miss GST. Although the Sales Tax Act of 2018 was implemented, for me, the GST system is much better, ”he said while debating the second reading of the 2020 Sales Tax (Amendment) Bill.
Former Deputy Finance Minister Ahmad Maslan (BN-Pontian) said Choong’s comment was “very interesting”, adding that the Malaysian Manufacturers Federation had also welcomed the possibility of the reintroduction of GST.
Wong Chen (PH-Subang) later said that Putrajaya should reintroduce GST at a lower rate of 3% if he really intends to bring back the tax scheme.
He said this should also be tied to a minimum five-year term to allow providers and consumers to get used to the new tax system.
“With Covid-19, it is clear that the government needs a consumption tax that is more stable than the SST so that government revenues are more stable and can be preserved.
“If the GST is recovered, the government should also ensure that our income tax policy is changed to be more progressive, that cash donations are increased and that the minimum wage is raised to a living wage,” he said.
Wong Chen said he would be fine with the GST return, although he will first examine the details of the tax system, adding that it should not be reintroduced at the expense of burdening the poorest parts of society.
Deputy Finance Minister Abdul Rahim Bakri said Putrajaya would review the submitted proposals, adding that his priority was to increase government revenue without burdening the people.
