PR reiterates opposition to GST

THURSDAY, MARCH 29, 2012 - 12:19
by Ram Anand

KUALA LUMPUR: Pakatan Rakyat will remain firm against implementation of the Goods and Services Tax (GST) by the government.

Opposition Leader Datuk Seri Anwar Ibrahim (pic) said it is not reasonable for the government, under the current situation where income levels among Malaysians were low, to carry out the move as it would affect those in the lower-income groups.

"BN said only 1.7 million Malaysians pay taxes. This was because the remaining number of the population belong to a low-income category," he said.

"Thus, the implementation of GST would affect the majority of these people."

Anwar said GST, which was expected to evenly spread the burden of taxes among Malaysians, should not be implemented until the income levels of the majority of Malaysians were raised.

"First, these people's income should be increased. Only then GST could be enforced," he said.

Yesterday, Minister in the Prme Minister's Department Datuk Seri Idris Jala reportedly called on the opposition to discuss with the ruling government the best ways to implement GST.

Idris said despite the looming general election, GST would be enforced towards the end of the year.

Yet another blown Budget — Lim Sue Goan

MARCH 29, 2012

MARCH 29 — The Finance Ministry has sought approval for a supplementary budget in the Dewan Rakyat every year for additional expenditure by various government agencies and ministries.

This time, it seeks a total of RM10.29 billion. It is the second additional expenditure application in a fiscal year, and many are “political expenditures”.

The government’s account is just like a household’s account. A family with a total monthly income of RM5,000 allocated RM4,500 for spending. However, when they saw a lovely handbag, they spent RM2,000 to buy it, causing a RM1,500 deficit for the month. Since they were unable to make ends meet, they had to use their savings or borrow money from relatives. The family could be destroyed as the debts snowballed over years.

In June last year, the government had requested an additional RM13.186 billion. This time, the government sought a supplementary budget amounting to RM10.29 billion, with some expenditure to be spent on preparations for the next general election. For example, a total of RM204.45 million has been allocated for the RM500 BR1M cash aid.The country has been in fiscal deficit for 15 consecutive years because there is no proper control over expenditure. Oil revenues might still be able to sustain the huge expenditure today, but once we become a net oil importer, the “emperor’s new clothes” will disappear.

Last year, the government announced the cancellation and reduction of a number of toll charges, causing the Ministry of Works to pay a compensation amounting to RM100 million, which does not include the RM120.55 compensation for toll reduction of the Cheras-Kajang highway, which took effect in March this year.

To alleviate the people’s burden, the government also increased subsidies for necessities. The additional fuel subsidy last year consumed RM4.45 billion.

Kerajaan, pembangkang perlu duduk semeja bincang GST

ARKIB : 28/03/2012

KUALA LUMPUR 27 Mac- Kerajaan dan pihak pembangkang perlu duduk semeja membincangkan pendekatan terbaik untuk melaksanakan cukai barangan dan perkhidmatan (GST).

Menteri di Jabatan Perdana Menteri, Datuk Seri Idris Jala (gambar) berkata, pelaksanaan GST wajar dipertimbangkan secara logik dan realistik kerana ia mampu memberi banyak faedah kepada Malaysia.

Secara terbuka, beliau menaruh harapan supaya kedua-dua pihak dapat berbuat demikian selepas berakhirnya Pilihan Raya Umum ke-13 nanti.

Beliau yang juga Ketua Pegawai Eksekutif Unit Pengurusan Prestasi dan Pelaksanaan (Pemandu) menambah, pelaksanaan GST mampu mengurangkan beban yang terpaksa dipikul oleh 1.7 juta pembayar cukai individu.

''Malaysia memiliki 28 juta penduduk dan daripada jumlah itu hanya 8.5 juta mendaftar tetapi yang menjadi pembayar hanya 1.7 juta sahaja.

''Jika GST tidak dilaksanakan, kita sebenarnya tidak berlaku adil kepada 1.7 juta pembayar cukai ini. Mengapakah kita tidak menyebarkan bebanan ini kepada semua yang layak?,'' katanya.

Beliau berkata demikian pada pada sesi ceramah bertajuk Program Terkini Transformasi Ekonomi anjuran Institut Akauntan Awam Bertauliah Malaysia di sini hari ini.

Malah, katanya, pelaksanaan GST adalah kritikal bagi Malaysia kerana negara perlu mengurangkan kebergantungan kepada pendapatan petroleum pada masa depan.

Tegas Idris, pelaksanaan GST tidak akan membebankan rakyat, sebaliknya sebanyak 143 buah negara sudah memperkenalkan GST dan menikmati pelbagai faedah.

Antara faedahnya ialah pengecualian cukai bagi produk makanan utama, pengurangan cukai korporat dan peribadi serta penghapusan cukai jualan dan perkhidmatan.

Berdasarkan kajian, Malaysia mampu menjana pendapatan sebanyak RM6.3 bilion sekiranya mengenakan 4.0 peratus GST, RM9.7 bilion (5.0 peratus) dan RM25.7 bilion (7.0 peratus).

Ketika ditemui selepas ceramah itu, Idris mengakui Malaysia belum bersedia untuk melaksanakan GST kerana rakyat masih belum mampu menerima dasar percukaian tersebut.

Antara puncanya kerana rakyat bimbang akan berlaku inflasi dan kenaikan harga makanan utama.

''Saya masih menaruh harapan agar pendidikan dan kesedaran berhubung GST diperluaskan supaya pelaksanaannya boleh dilakukan,'' ujarnya.

Ditanya bilakah kerajaan benar-benar bersedia untuk mewujudkan GST, Idris berkata: ''Mungkin ia mengambil masa yang panjang."

Katanya, sekiranya GST diluluskan sekali pun, ia mungkin mengambil masa setahun selepas itu bagi pelaksanaannya.

Artikel Penuh: http://www.utusan.com.my/utusan/info.asp?y=2012&dt=0328&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_02.htm#ixzz2WGIu05Zy

© Utusan Melayu (M) Bhd

Pakatan says will not cooperate on GST

BY CLARA CHOOI
MARCH 28, 2012

KUALA LUMPUR, March 28 — Pakatan Rakyat (PR) will not cooperate with Barisan Nasional (BN) on its plan to implement the controversial goods and services tax (GST), Datuk Seri Anwar Ibrahim insisted today, dismissing a suggestion by Pemandu CEO Datuk Seri Idris Jala.

Anwar (picture) disagreed with Jala’s reasoning that introducing the GST would help spread the tax burden more evenly among Malaysians, pointing out that those currently who do not qualify to pay taxes are considered by PR as the country’s “poor”.

As such, the Opposition Leader said that until the general incomes of Malaysians are increased, PR would continue to oppose the controversial GST.

“Our stand is, the peple who dont pay taxes are generally under the poor category.

“So that’s why Pakatan is against the move... but the only way is to defeat BN in the general elections,” he told a press conference in Parliament today.

Jala said yesterday that the country’s two rival political coalitions should cooperate on tax reforms once the political temperature has simmered down after the upcoming general elections.

The Pemandu CEO had said that only 1.7 million Malaysians or six per cent of the population currently pay taxes and GST, which was postponed in 2010 apparently to head off political backlash, was the best way to spread the tax burden more evenly.

“We do need the fiscal space (provided by the GST),” Idris Jala told attendees at a certified public accountants conference here.

“Hopefully, after the election, both parties will settle down and we can agree on GST,” he said.

Jala, who is also a minister in the Prime Minister’s Department, said that with GST, income tax and corporate tax could be lowered which would make Malaysia more competitive.

He noted that at a rate of four per cent GST, the government would realise an additional RM6.3 billion in revenue and at seven per cent GST, which is the rate in neighbouring Singapore, the government could collect an additional RM25.7 billion.

The GST Bill was tabled for reading in Parliament in December 2009 but its second reading, originally planned for March 2010, was postponed due to fierce political resistance.

It was originally expected to have been implemented by the middle of 2011.

Politicians urged to stop bickering over goods and services tax

Wednesday March 28, 2012

KUALA LUMPUR: Politicians on both sides have to put aside their differences on crucial economic issues such as the goods and services tax (GST), said Minister in the Prime Minister's Department Datuk Seri Idris Jala.

“I believe that both Barisan Nasional and Pakatan Rakyat should lay down their swords when it comes to things that are very important for the country.

“The fact that 143 countries have already implemented GST points to the global recognition of the need for a broad-based tax,” he told reporters after the Malaysian Institute of Certified Public Accountants' 53rd Anniversary Commemorative Lecture.

Malaysia's tax base, he added, was too narrow as only 1.7 million people, or 6%, out of its 28 million population were shouldering its tax burden.

“When you have a consumption tax like GST, you spread the burden across. It is also an opportunity for us to reduce corporate taxes so our companies can become a lot more competitive, and we can reduce personal income taxes," he said.

Asked when GST would come into effect, he replied: “You have to ask the Prime Minister, he is the Finance Minister. But I don't think it will happen now. Hopefully, after the election, things will settle down and we can move to implement it.”

The Performance Management and Delivery Unit chief executive officer also expressed confidence that the Economic Transformation Programme was on track to meet its target of achieving a gross national income (GNI) of US$15,000 per capita by 2020.

“We will get there,” he said, adding that GNI per capita currently stood at US$9,400.

Pakatan tetap tolak pelaksanaan GST

Hazayani Zakaria,

28 Mac 2012

KUALA LUMPUR, 28 Mac: Pakatan Rakyat tetap berpendirian menolak cadangan kerajaan untuk melaksanaan cukai barangan dan perkhidmatan (GST).

Ketua Umum PKR, Datuk Seri Anwar Ibrahim berkata, adalah tidak munasabah GST dilaksanakan dalam pada kadar pendapatan rakyat tidak meningkat.

"Alasan kita ialah orang yang tidak membayar cukai itu umumnya bawah kategori yang miskin. Apa yang dicadangkan BN ialah memperluas jumlah pembayar cukai baru yang melibatkan golongan miskin.

"Selagi kadar pendapatan mereka tidak meningkat, tidak munasabah untuk melaksanakan sistem ini," kata beliau selepas mesyuarat Majlis Pimpinan Pakatan Rakyat di Bangunan Parlimen hari ini.

Justeru kata Ketua Pembangkang itu, bagi memastikan GST tidak dilaksanakan, rakyat mesti menolak BN pada Pilihan raya Umum ke-13.

"Maka Pakatan Rakyat tegas dengan pendirian kita menolak cadangan BN untuk melaksanakan GST dan caranya dengan tumbangkan BN," katanya.

Semalam, Menteri di Jabatan Perdana Menteri Datuk Seri Idris Jala dilaporkan berkata, GST akan menjadikan Malaysia lebih kompetitif.

Katanya, pelaksanaan GST akan mewujudkan ruang untuk negara menurunkan cukai korporat dan individu.

'We're on track to high-income status'

Publication: NST

Date of publication: Mar 28, 2012

Section heading: Business Times

Page number: 002

Byline / Author: By Kamarul Yunus

KUALA LUMPUR: MALAYSIA is on the track to achieve a high-income nation status, with the country's per capita income stood at US$9,400 as of last year, Minister in the Prime Minister's Department Senator Datuk Seri Idris Jala said.

He said Malaysia has performed well above expectations in terms of the Economic Transformation Programme for last year, in terms of namely the gross national income (GNI), investments and job creation.

"I think we will get there (a per capita income of US$15,000 by 2020). We would, if we want to get a GNI of RM1.7 trillion, we need to get so by 2020," he said when presenting a commemorative lecture, entitled "The Transformation Story", here yesterday.

Jala said last year's GNI target was at RM797 billion for 28 million population, of which the country managed to register about RM830 billion, or 4 per cent above the target.

"In terms of total investments, our target is about RM83 billion but we got more than that, RM94 billion, (which is) about 13 per cent above the target," he said.

However, job creation is slightly off the target. A total of 313,000 jobs were created last year, less than the 330,000 annual target, but this, he said, is still considered good for its first-year implementation.

Jala said the fact that an international panel, including representatives from the World Bank has praised Malaysia's economic transformation plan, indicates that the ETP has a good start.

On the proposed consumption tax, he expressed his hope that the new tax regime would be implemented after the 13th general elections.

However, he said the execution will still depend on the government's decision, reiterating that it will take a long time to implement.

"Even from the moment we make the announcement, it will take a long time to do it. There's a lot of reasons but bear in mind, there are already 143 countries, including Somalia, Lesotho, Sudan and Laos which have implemented the goods and services tax (GST). "I think you have to ask a lot of people. There is a need to make the public accept why we need to implement it (GST)," he told reporters later.

Besides reducing dependence on the petroleum industry as revenue, Jala said the GST will be an alternative revenue source for the government as well as help reduce corporate tax and probably personal income tax.

He pointed out that of the 28 million people in Malaysia, only 1.7 million pay taxes. When there is consumption tax, it will be more spread out.

Jala Calls on Political Parties to Deal with GST Together

PREMALATHA JAYARAMAN sunbiz@thesundaily.com

KUALA LUMPUR (March 28, 2012): Minister in the Prime Minister's Department Senator Datuk Seri Idris Jala calls on political parties to put aside their differences and come together to discuss the broad-based consumption tax on goods and services (GST), which will bring additional revenue for the country.

Jala, who is also the CEO of Performance Management and Delivery Unit (Pemandu), said both sides should sit down together to ensure that they agree on the Goods and Services Tax (GST).

If the GST is implemented, he said, Malaysia can generate additional revenue to pay its debt and invest in the future.

He was speaking to reporters after delivering a lecture on "Economic Transformation Programme Update" organised by The Malaysian Institute of Certified Public Accountants (MICPA) yesterday.

"In my view we must introduce GST. In Malaysia, out of the 28 million people, only 1.7 million people are paying tax. We are relying on the 1.7 million people that carry the burden. When we have consumption tax, which is the GST, it means we spread the burden across," he said.

Jala said it is also an opportunity to reduce the corporate tax and enable companies to become more competitive.

"We can also help reduce personal income tax. That's why most countries have gone down the path," he said, noting that 143 countries have already implemented GST.

Jala said GST will have a positive impact on the country's fiscal position. He said if the GST is 4%, the country will be able to achieve a revenue of RM6.3 billion in two years. At 5%, the revenue will be RM9.7 billion in two years while at 7%, it will be able to register RM25.7 billion in two years.

However, he said there is a need for the public to understand GST and its effect on the country.

"In fact, many countries that have implemented GST make staple items such as rice non-GST. I think education is the key in creating greater awareness," he said.

Jala said Malaysia is also on track to achieve the per capita Gross National Income (GNI) of US$15,000 (RM48,000) by 2020. The per capita GNI currently stands at US$9,400.

Jangan politikan GST, kata Idris Jala

27 Mac 2012

KUALA LUMPUR -- Pelaksanaan cukai barangan dan perkhidmatan (GST) tidak wajar dipolitikkan, kata Menteri di Jabatan Perdana Menteri Datuk Seri Idris Jala, hari ini.

Idris Jala yang juga Ketua Pegawai Eksekutif Unit Pengurusan Prestasi dan pelaksanaan (Pemandu), berkata GST akan menjadikan Malaysia lebih kompetitif. 

Pelaksanaan GST akan mewujudkan ruang untuk negara menurunkan cukai korporat dan individu, katanya kepada pemberita selepas memberi syarahan pada Ulang Tahun ke-53 Institut Akauntan Berkanun Bertauliah di sini.

Beliau bagaimanapun berkata GST tidak akan dilaksanakan tahun ini memandangkan ia mengambil masa sekurang-kurangnya setahun dari tarikh pengumuman pelaksanaan sebenar.

GST sebelum ini dijadual dilaksana oleh kerajaan pada tahun lepas bagi menggantikan cukai jualan dan perkhidmatan, namun ditangguhkan. 

Beliau berkata pelaksanaan GST atau turut dikenali sebagai cukai bernilai tambah (VAT), merupakan alat berkesan dalam mengurangkan atau menangani defisit negara.

Defisit fiskal Malaysia pada 2011 susut kepada 5.0 peratus berbanding 5.6 peratus pada 2010. Ia menyasarkan sasaran defisit sebanyak 4.7 peratus tahun ini.

GST dilaksanakan di 143 negara termasuk Kanada, Australia, Singapura, Hong Kong dan New Zealand. 

"Ini membuktikan perakuan global mengenai perlunya cukai berasas luas dan jika mereka boleh, kita juga boleh lakukan," katanya. 

Idris juga berkata hanya 1.7 juta penduduk membayar cukai, dan memikul beban 28 juta penduduk. 

"Apabila ada cukai penggunaan iaitu GST, kita melebarkan beban secara menyeluruh dan ia memberi peluang kepada kita untuk mengurangkan cukai korporat, syarikat kita akan menjadi lebih kompetitif, membantu mengurangkan cukai pendapatan individu, dan kesemuanya akan menyumbang kepada peningkatan perolehan negara.

"Oleh itu orang ramai perlu diyakini supaya menerima GTS memandangkan ia penting, selain menangani kebimbangan terhadap impak GST ke atas inflasi dan makanan asasi.

"Banyak negara yang melaksanakan GST tidak mengenakan cukai itu ke atas makanan asasi seperti beras," katanya. 

Dalam perkembangan lain, Idris berkata pendapatan perkapita semasa kini sebanyak US$9,400. Kerajaan yakin dapat menaikkan pendapatan perkapita kepada US$15,000 menjelang 2020.  -- Bernama

BN and PR should agree to GST after polls says Idris Jala

BY LEE WEI LIAN
MARCH 27, 2012

KUALA LUMPUR, March 27 — The country’s two rival political coalitions should cooperate on tax reforms once the political temperature has simmered down after the upcoming general elections said Datuk Seri Idris Jala today.

The Pemandu CEO said that only 1.7 million Malaysians or six per cent of the population currently pay taxes and the goods and services tax (GST), which was postponed in 2010 apparently to head off political backlash, was the best way to spread the tax burden more evenly.

“We do need the fiscal space (provided by the GST),” Idris Jala told attendees at a certified public accountants conference here.

“Hopefully, after the election, both parties will settle down and we can agree on GST,” he said.

Jala (picture), who is also a minister in the Prime Minister’s Department, said that with GST, income tax and corporate tax could be lowered which would make Malaysia more competitive.

He noted that at a rate of four per cent GST, the government would realise an additional RM6.3 billion in revenue and at seven per cent GST, which is the rate in neighbouring Singapore, the government could collect an additional RM25.7 billion.

“We can then reduce personal and corporate taxes and also reduce sales and service taxes,” he said. Idris said that despite 8.5 million Malaysians being registered as tax payers, only 1.7 million actually payed any.

“We can’t rely on just a few to carry the kavadi,” he said.

The GST Bill was tabled for reading in Parliament in December 2009 but its second reading, originally planned for March 2010, was postponed due to fierce political resistance.

It was originally expected to have been implemented by the middle of 2011.

Analysts said that the government’s move to put off GST was due to a weakening of political will following vociferous opposition from Pakatan Rakyat leaders.

The Najib Aministration’s official reason was that it wanted to “engage inclusively with all segments of rakyat pertaining to the GST”.

Bloomberg reported earlier this month that the prime minister may dissolve Parliament in May for a general election that could likely be held on June 3.