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Friday, November 1, 2013

Need for greater integrity among retailers before GST is implemented

Posted on 25 October 2013 - 10:05pm
Last updated on 26 October 2013 - 11:47am
Karen Arukesamy

PETALING JAYA (Oct 25, 2013): The Malaysian Employees Federation (MEF) says the government should ensure a high level of integrity among retailers and service providers for successful implementation of the Goods and Service Tax (GST).

MEF council member Tan Sri Mohd Noor Ismail said that the 6 per cent start is "too high for starters".

"We must ensure that our retailers are happy to collect and remit the GST.

"Currently there are a lot of leakages. It is very important to build up integrity and to do this in 17 months may not be enough because building integrity is a long-term process," he said.

He described the government's proposals on the private retirement scheme (PRS), entrepreneurship training and the monthly income tax deduction as positive initiatives.

He said the federation was pleased that the government has granted small-medium enterprises additional tax relief with respect to differences paid in terms of the basic wages to the minimum wage of RM900 in Peninsular Malaysia and RM800 for Sabah and Sarawak next year.

"However, MEF is of the view that the tax relief should have been extended to cover all employers and be effective from 2013," Mohd Noor said.

He said MEF is also positive on the retention strategies put in place in terms of providing training incentives, especially the RM450 million to the Skills Development Fund for up-skilling and re-skilling.

Mohd Noor said the reduction of individual tax would also help retain talents while the reduction in corporate tax brought comfort to many employers, especially the SMEs, and also made the country more competitive in terms of attracting Foreign Direct Investment.

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