GST can be implemented, but at low rate, says Maybank’s Wahid

Premalatha Jayaraman sunbiz@thesundaily.com

KUALA LUMPUR (Sept 5, 2012): The government can start imposing the highly-anticipated goods and services tax (GST), said Malayan Banking Bhd president and CEO Datuk Seri Abdul Wahid Omar, suggesting a low rate of 3% or 4% to begin with as opposed to the current 6% service tax.

He said a lower GST will allow people to familiarise themselves with the new system.

“As far as Budget 2013 is concerned, we are hopeful that there are a number of areas that the government will look at. I am personally in favour of the implementation of GST. I think there is a need to broaden the base of our tax. When you have a good and effective GST system, you can look at lowering the tax rate,” Wahid told reporters on the sidelines of Maybank’s Hari Raya open house here yesterday.

He believes that the business community will support the GST if it is communicated effectively, adding that the government has been preparing businesses and corporates to get ready for the tax regime.

He added that the biggest benefit from a GST legislation is the avoidance of tax evasion.

Wahid also hopes that Bank Negara Malaysia will continue to maintain a conducive monetary policy both in terms of interest rates and other measures.

“As far as the interest rate is concerned, it is very important to maintain a low rate to encourage more investment (inflows),” he said.