Nuffnang Add

Thursday, November 28, 2013

GST implementation a smart decision – SUCCC

Posted on November 28, 2013, Thursday

KOTA KINABALU: The implementation of the Goods and Services Tax (GST) starting April 1, 2015 is beneficial to the country as it is a perpetual source of income which will increase our country’s wealth.

Sabah United Chinese Chambers of Commerce (SUCCC) president Datuk Seri Panglima Gan Sau Wah said the implementation of the GST could strengthen our economy, making Malaysia a stronger nation.

He said Prime Minister Datuk Seri Najib Tun Razak’s announcement to implement the GST was a smart and wise decision.

“Among our six Prime Ministers, Najib is the one who has the vision and good financial management,” he added.

Gan said 90 per cent of America and the European countries had implemented the GST, likewise with Singapore and Thailand in South East Asia.

“If Malaysia is to achieve a developed nation status by 2020, we must implement GST,” he said in a press conference here yesterday.

He said the implementation of the GST was fair to all races, as all races must pay the GST.

“As for other taxes … Malaysia has more than 10 million people doing businesses but only around one million are paying income tax.

“Income tax alone is insufficient to sustain our country.”

With the implementation of the GST, Gan said the government would abolish the six per cent services tax.

In addition, he said Najib had announced that personal income tax would decrease between one and three per cent while corporate income tax would be reduced by one per cent.

“Under these circumstances, the people will not be affected much, nor is the GST an unfair policy.

“The SUCCC fully supports the government policy.”

Asked if the GST would affect the low income group, Gan said there were up to 200 goods such as essential items that were free from GST.

Furthermore, individuals earning RM4,000 and below monthly need not pay income tax.

“The government also has the 1Malaysia People’s Aid (BR1M) to assist the low income group so that they do not feel pressured.”

He added that rich people who spend more would pay more GST, while poor people who spend little would not be affected much.

As to whether the implementation of GST would cause inflation, Gan explained that inflation was a phenomenon caused by global economy and Malaysia was not immune to the impacts brought about by the world economy.

“Inflation is not caused by GST, it can be due to increase in population, competition and weak currency.”

Gan pointed out that no one had complained when the government abolished the subsidy for sugar, nor did it stop people from buying sugar.

Gan quoted Najib, who had said that tax evaders were traitors, adding that good citizens would discharge their responsibility and pay taxes.

“The richest company in Malaysia is Petronas and our country needs Petronas’ support.

“But one day we will exhaust our oil supply, whilst the GST is a perpetual and stable source of income,” he said.

Also present at the press conference were SUCCC secretary general Datuk Ling Tiong Chai, treasurer general Datuk Yap Yiw Sin, Tambunan Chinese Chamber of Commerce president Lt Kol (K) Dato’ Oi Thiam Beng and SUCCC members.

No comments:

Post a Comment