Posted on 25 October 2013 - 09:19pm
Last updated on 26 October 2013 - 12:08pm
|Najib and Muhyiddin (R) holding the 2014 Budget document after its |
tabling at the Parliament building, Oct 25, 2013. BERNAMA
KUALA LUMPUR (Oct 25, 2013): The proposed 6% Goods and Services Tax (GST) announced today is not too high as it is high time to impose such a consumption tax to further strengthen the economy.
Deputy Prime Minister Tan Sri Muhyiddin Yassin said when the GST comes into force in 2015, the Sales and Services taxes will be abolished.
He also said a slew of measures had been put in place to help the lower and medium income group to ensure they will not be burdened by it.
Muhyiddin explained that with the proposed reduction of personal and corporate income tax as well as the one off RM300 cash assistance to households that are recipients of the 1Malaysia People's Aid (BR1M) are among the measures that will help the people.
"The effect (of GST) on this group is neutral," he told a press conference in Parliament after the tabling of Budget 2014 by Prime Minister Datuk Seri Najib Razak today.
In his speech, Najib announced that GST will kick in on April 1, 2015.
Najib said the government realised that the current sales and services taxes have some weaknesses such as the impact of double taxation on consumers. He added that such weaknesses will ultimately result in losses to the consumers and the government.
Najib however added that the government believes that this is also the best time to implement GST as the inflation rate is low and contained.
Muhyiddin stressed that people should not be influenced by allegations from certain quarters that the GST will be a burden to the people as more than 160 countries have implemented it.
"Even countries that are less developed compared to Malaysia have GST. So it is about time we too have GST.
"GST will only be implemented in 2015, so that gives us 17 months and I was told by the Prime Minister that explanations and clarifications on GST will be provided for the people," he said.
Muhyiddin also said Barisan Nasional is prepared to answer questions on the GST in the campaigning for the Sungai Limau by-election as he is well aware that this will be brought up by the Opposition.