`Govt in no hurry to implement GST'

Publication: NST

Date of publication: Jan 14, 2013

Section heading: Main Section

Page number: 004

Byline / Author: By S. Ista Kyra

IPOH: The Federal Government is still mulling over the implementation of the proposed goods and services tax (GST) to replace the sales and service taxes.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said although feedback from the public had been positive, the government was in no hurry to announce the GST implementation.

"We are still in the process of engagement and have not decided whether to go ahead with it.

"Although the responses for GST have been positive, we do not want to rush into it (implementation) without having proper measures in place," he said after launching a community service programme by the Customs Department in Chemor near here yesterday.

Present was Customs director-general Datuk Seri Khazali Ahmad.

Ahmad Husni, who is also Tambun member of parliament, however, said implementing the GST would not be detrimental to the public.

"The government has been studying methods to ease embracing the new taxation system.

"These include making GST exemptions for certain basic items and reducing corporate tax."

Asked to comment on a recent news report predicting that the GST could be implemented as early as next year, Ahmad Husni said it could take place only 18 months after the GST Bill was passed in Parliament.

"It will take between a year and a year and a half for the government, private sector and business entities involved to make preparations and complete the system for adopting the GST."

The GST Bill was tabled in Parliament for first reading in December 2009, but later withdrawn from its second reading in 2010.

It was originally expected to be implemented in 2011 under the purview of the Royal Malaysian Customs Department.