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Friday, January 10, 2014

Rafizi predicts RM1 billion to be spent to get GST running

Harakahdaily - TS, 09 January 2014

RM100 million could have bought Putrajaya the software company, but instead the money was used to develop a software called MyGST to implement the Goods and Services Tax (GST) that will come into effect in April 1, 2015.

Revealing this recently, Pandan MP Rafizi Ramli had smelt a rat in Putrajaya’s decision alleging that the BN government tried to profit twice from the implementation of GST.

"By imposing GST to the people and traders, the government can profit twice. The government is targeting to sell the MyGST software to 300,000 business traders and it might be made compulsory in the future,” he was quoted saying by Sinar Harian.

The PKR strategic director was responding to the announcement made by Customs Department director-general Khazali Ahmad on the RM100 million software that is under testing before going to market nationwide for traders to buy.

Traders could purchase the software at a subsidized price, said Khazali, inclusive of training to use the system.

With another RM100 million had been located for training and carrying out GST campaigns, and BN-styled of spending, Rafizi expected the cost to implement GST would balloon to RM1 billion.

Meanwhile, PAS president Tuan Guru Abdul Hadi Awang continued to pour cold water on GST saying the government should focus on cutting wastages, leakages and lavish spending and reducing corruption instead of taking the easy way out to raise revenues.

“Leakages are what caused the deficit that requires additional funding. This is all government’s faults and not the people’s.

But the solution is not by burdening the weak and increasing the existing taxes, introducing new taxes and hiking the prices of goods… the solution is to stop leakages and to eliminate it. By acting sternly against the source of problem with courage, sincerity and decisively,” said Abdul Hadi in a statement yesterday.

A good taxation system, Hadi said, should emulate the zakat (alms collection and distribution) system in Islam where the poor would be protected against any taxes.

“GST will tax the smallest items, scratch the poorest to the most wealthy, in fact the rich will be more comfortable. If zakat is about annually, GST is about days and seconds,” added the Marang MP.

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