Businesses Accept Inevitability Of GST, Survey Reveals

KUALA LUMPUR, Aug 26 (Bernama) -- Businesses in Malaysia have begun to accept the inevitability of the implementation of the Goods and Services Tax (GST) in Malaysia, says the Associated Chinese Chambers of Commerce and Industry of Malaysia.

President Datuk Lim Kok Cheong, however, said a clear timetable was needed for the introduction of the GST.

"The standard rate for GST should start from as low as possible and should not burden the people.

"The ACCIM expects the GST implementation to be compensated by a reduction in personal income tax and corporate tax rates," he told a press conference to announce the findings of the survey here today.

The survey revealed that a majority of businesses advocated to start the (GST) from a low rate, with some 55 per cent of respondents preferring a rate of three per cent.

This would result in a lesser burden on consumers and in anticipation of hiccups in the initial phase of its implementation.

The survey also revealed that around 35 per cent of respondents indicated their support for the Trans-Pacific Partnership Agreement (TPPA), while 13 per cent did not agree that Malaysia ought to be part of TPPA.

"The majority of respondents, about 52 per cent, claimed that they were not aware or was not familiar with TPPA.

On economic outlook, the survey said although Malaysia continued to be susceptible to the effects of weak global economies, majority of businesses continued to appear confident, as external economic conditions were showing signs of improvement and the economy was generally resilient.

"Going forward into 2014 and 2015, the majority of the respondents continued to be positive in terms of outlook and sentiment with regards to the Malaysian economy.

Lim also said Prime Minister Datuk Seri Najib Tun Razak would unveil detailed strategies on how to address growing concerns over the health of Malaysia's public finances when tabling the 2014 Budget in Parliament on Oct 25, says the Associated Chinese Chambers of Commerce and Industry of Malaysia.

He said the government has a target to narrow the fiscal deficit to four per cent of the gross domestic product (GDP) this year and to three per cent by 2015 while there was a debt-to-GDP ceiling of 55 per cent.

-- BERNAMA