Posted on 25 October 2013 - 09:06pm
Tan Sri A.K. Nathan
Executive chairman and group managing
director Eversendai Corp Bhd
This is a well balanced budget and I admire the bold move by Prime Minister Datuk Seri Najib Abdul Razak to announce the implementation of the goods and services tax (GST) at 6% by April 1, 2015, which is long awaited and critically needed to address our current fiscal deficit and certain economic misalignment, and to bring the economy to the path of sustainable growth to achieve the status of developed nation by 2020.
The understanding of the benefits of the GST is of utmost importance and the government must continue addressing the Rakyat and implement it in a timely manner.
Introduction of GST will be painful to certain quarters of our Rakyat in the short run but the revenue to be generated from the GST if channeled into more infrastructure developments to promote business investments economy activities, as well as for the well-being of the Rakyat need to be looked into.
The announcement of new infrastructure development projects will benefit the construction industry, but I hope the projects are awarded to competent, capable companies.
Managing GST is a task and it will definitely increase the expenditure for companies at large.
As such, a reduction by 1 percentage point from 25% to 24% in corporate tax is insufficient and that needs to be addressed before the implementation of GST.