MP hails govt’s move to introduce GST

by James Ling. Posted on October 24, 2011, Monday

THANK YOU: Muhammad (left) presents a memento to Nanta,
witnessed by other Customs officers and invited guests.

KAPIT: Kapit MP Datuk Alexander Nanta Linggi lauded the Goods and Service Tax (GST), which is implemented in 167 developed countries worldwide, as a good move to uplift the economy and improve people’s lives.

“To achieve a developed nation status in 8 years from now by the year 2020, we need to implement GST. GST is a vital tool for the development of the country. GST needs to be implemented to replace the existing national tax policy so as to be more efficient, transparent and effective,” he said.

He said this when officiating at the closing of an awareness programme on GST organised by Royal Customs Department, Sibu branch in collaboration with Kapit District Office at Meligai Hotel here on Saturday afternoon.

Saying that the government was not in a haste to implement GST, he cautioned that GST required an effective and efficient delivery system, right from the people to the government agencies.

He praised the Customs Department for initiating the programme in Kapit.

“Despite being located far in the interior, at least Kapit is not left out of the programme as the division is one of the financial contributors to the development of the country. Hopefully the participants know what GST is and impart the knowledge to their colleagues and friends. It is a good beginning and I hope that more such programmes will be held here in the future. GST is something new to Kapit though only a handful of people know of the system,” he pointed out.

On the importance of GST, Nanta said the government could not rely on taxes alone which were insufficient to finance its various mega development programmes.

Later, he presented certificates of participation to some 70 attendees who came from various government agencies, NGOs, and local entrepreneurs.

Earlier, the programme was launched by Customs Sibu head Muhammad Yunus Hanuar.

Explaining GST, Muhammad said it was a broad-based consumption tax based on a value-added concept which would replace the current sales tax and service tax (SST).

“Payment of tax is made in stages by the intermediaries in the production process on the value added at each stage. GST allows the intermediaries to claim back whatever GST paid on the acquisitions made in the course or furtherance of business. Thus the tax itself is not a cost to the intermediaries and does not appear as an expense item in their financial statements” he explained.

He added that the programme had been organised in Sibu and hinted that the department expected to organise a similar programme in Kanowit.

Muhammad disclosed that the department was proposing to set up a GST branch in Kapit and Mukah once the government embarked on its implementation.

Read more: http://www.theborneopost.com/2011/10/24/mp-hails-govt%e2%80%99s-move-to-introduce-gst/#ixzz2dPltjWUl