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KUALA LUMPUR: The government will carry out a detailed study to determine whether the Goods and Services Tax (GST) should be reintroduced or continue with the Sales and Services Tax (SST) now in force.
Deputy Finance Minister I Datuk Abd Rahim Bakri said the government would have to determine whether to reintroduce GST or continue OSH with an improved system to ensure it will generate better tax revenue.
“YB Subang (Wong Chen) and YB Tebrau (Steven Choong Shiau Yoon) have agreed to the re-implementation of the GST but have presented some recommendations. The government will review all the proposals made.
“The most important thing is that in the end, it will increase the country’s income but at the same time, it will not affect the interests of the rakyat,” he said in his closing speech on the points raised during the discussions for the Sales. Tax (Amendment) Act 2020, which was passed by a simple voice vote on Thursday (December 17).
The Sales Tax (Amendment) Bill is intended to allow the Director General of the Customs Department to withhold all or part of the refund amount for crediting in any subsequent or subsequent tax period.
According to Abd Rahim, strengthening the law was important to give the Customs Department more room for maneuver to collect tax revenue.
“This will have a positive impact on the development of the country as the proceeds will be used for the development of the country,” he said.
Abd Rahim said that there were advantages and disadvantages for both GST and SST.
“Some parties have said that GST is good because it improved the revenue for the country during its implementation with a collection of about RM44bil per year compared to SST, which only managed to collect RM21bil,” he said.
“However, we have to look at it from two perspectives: Although the implementation of GST could increase government revenues, it also reduces the disposable income of the people,” he said.
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