GST benefits outweigh costs, says Maybank chief

Publication: NST

Date of publication: Sep 5, 2012

Section heading: Business Times

Page number: 001

Byline / Author: By Roziana Hamsawi

  

KUALA LUMPUR: Malayan Banking Bhd (Maybank) chief executive officer Datuk Seri Wahid Omar hopes the Budget 2013 will look into the implementation of the Goods and Services Tax (GST).

He said the tax has more benefits than disadvantages to the economy, a major one being it would lessen the number of tax evaders.

I am hopeful that the government will look at implementing it because I am personally in favour of it, he told reporters when met during the Maybank Hari Raya open house here yesterday.

Wahid said there is a need to broaden the base of the Malaysian tax system.

An efficient communication to the public about GST is highly needed to allow Malaysians to be prepared for the tax system which is considered to be more comprehensive, effective, transparent and businessfriendly.

With GST, the opportunity for tax evasion will be lessened. When we have a good GST system, we can actually start lowering the tax rate, Wahid said, noting that there are too many misconceptions about the system and that familiarity will eventually make the public realise that the benefits far outweigh the costs.

If GST is implemented, we can always always start with a lower rate, at maybe 3 to 4 per cent, he said.

I am not sure if it should be done from January 1 2013 or another year, he said, adding that would be good if there's some indication on the date of implementation.

Wahid is also hopeful that the upcoming Budget will announce a conducive tax environment which will facilitate companies' efforts to carry out corporate social responsibility programmes.