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Thursday, March 20, 2014

CPI to see 1.8pc rise next year

Publication: NST
Date of publication: Mar 20, 2014
Section heading: Main Section
Page number: 021

THE Consumer Price Index (CPI) is expected to see a temporary rise of 1.8 per cent when the Goods and Services Tax is implemented next year.

Deputy Finance Minister Datuk Ahmad Maslan told the Dewan Rakyat yesterday that the rise was non-permanent and the tax would not be imposed on basic needs, such as healthcare, private education, public transportation, toll and residential properties.

"A study by the Customs Department indicates that those earning less than RM1,000 spent 33.4 per cent of their income on food and 31.4 per cent on water, electricity and utility bills.

"GST will not be imposed on 64.8 per cent of their monthly expenses."

He a said 15,542 restaurants would impose GST when it is implemented by April next year. Presently, 4,357 restaurants have imposed the sales and services tax.

"GST was introduced to restructure the current taxation system and make it more transparent, effective and business-friendly.

"This will strengthen the government's fiscal position," he said when responding to a question by Teo Nie Ching (DAP-Kulai) who wanted to know more about the GST.

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