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.