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Friday, November 1, 2013

Nansian: GST to widen our tax base

Posted on October 27, 2013, Sunday

BAU: Tasik Biru assemblyman Datuk Peter Nansian has expressed his support for the implementation of the Goods and Services Tax (GST) which will come into effect in 2015.

Speaking to reporters after launching the Jong Regatta here yesterday, he spoke in defence of the GST which according to him will not affect the poor and lower-income group.

“GST is very important for us. Like any developed countries, the GST is to widen our tax base so that more people can contribute to the revenue of the nation and we have more funds for development.

“This has been done by many countries to make their tax base stronger,” he said.

Prime Minister Datuk Seri Najib Tun Razak announced the implementation of GST when tabling the Budget 2014 at the Parliament in Kuala Lumpur on Friday. Fixed at six percent effective April 1, 2015, Najib said the rate is the lowest among Asean countries.

The premier had also said GST will not be imposed on essential food items, services provided by the government, transportation, education and health services, and sale, purchase and rental of residential properties and selected financial services.

Nansian, who is also Assistant Minister of Local Government and Community Development (Community Services), said this showed the GST will not burden the lower-income group.

“Not everyone is contributing to the revenue of the country. You ask for more funds, but where do the funds come from? So we have to contribute and those who can afford to contribute, they can contribute.

“You do not have to worry about GST, because the poor and lower income group will not be burdened since all the essential goods will be zero-rated or tax exempted. So what is the complaint, if you do not pay the tax,” he said.

He elaborated by saying that only certain items would entail paying the GST tax such as when buying a good watch or luxury items.

On his overall view of the budget, Nansian said it was a pragmatic one aimed at balancing the nation’s spending.

“What is important is we want to reduce our (budget) deficit which is very vital for our finances to remain strong because we want (financial) ratings to be good for Malaysia. This is why we do something necessary to stimulate the economy

“In terms of structural and fiscal, of course the government is making it more efficient, less wastage, so that we can manage our country better.”

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