News 2013-11-28 15:32
KUALA LUMPUR, Nov 28 (Bernama) -- The majority of respondents in the Federation of Malaysian Manufacturers¡z (FMM) latest survey prefer the implementation of the much debated Goods and Services Tax over the current Sales and Services Tax (SST).
In the FMM-MIER Business Conditions Survey Second Half 2013, 56.8 per cent of 394 respondents nationwide voted to move to the GST, while 43.2 per cent preferred to continue with the SST.
As announced in Budget 2014, the broad-based consumption tax will be enforced on April 1, 2015 and pegged at six per cent, replacing the 16 per cent rate of the SST. FMM President Tan Sri Yong Poh Kon said 6.1 per cent of the respondents agreed with the six per cent rate, but close to 80 per cent opined that the GST should start at four per cent while 13.2 per cent favoured a rate of five per cent.
"Once this system (GST) is in place, naturally people will expect some increase in the rate in time to come. We cannot speculate," Yong told a press conference after revealing the findings of the survey here today.
He was responding to a question on an acceptable increase in the GST rate in the future.
Close to 42 per cent of the manufacturers surveyed said they are looking to expand their existing business over the next three years.
The findings show 36 per cent plan to maintain their existing level of operations, 27.2 per cent are likely to restructure their business model, 27 per cent want to diversify their businesses, 14.7 per cent plan to scale down while 9.4 per cent are likely to relocate their business.
The survey, which took place before the announcement of Budget 2014, was jointly conducted by FMM and the Malaysian Institute of Economic Research (MIER).