The Malaysian Reserve
| October 21, 2013
By Prem Kumar Panjamorthy
The government should implement the proposed Goods and Services Tax (GST) in stages to enable fast adoption by the people.
Dr Mahathir also urged the government to invest in domestic and overseas business ventures, which would ensure better returns on investment.
The government should implement the proposed Goods and Services Tax (GST) in stages to enable fast adoption by the people.
Former prime minister Tun Dr Mahathir Mohamad said anytime is an appropriate time for GST, given that it is done in stages without panicking any tax payers.
“We should not suddenly introduce a new tax at a very high level. If it’s a lower percentage, people will adopt the tax within days. But if it is very high, it will take more time,” he said last Friday at a media conference.
Asked on whether 6% is the right initial level for GST, he said: “I have to do detailed research and consult all the stakeholders (if I have to answer that question).”
Dr Mahathir urged the government to invest in domestic and overseas business ventures, which would ensure better returns on investment.
This, he said, is better when compared to the cash handouts dished out by the government (in the form of the RM500 1Malaysia People’s Aid).
“Our deficit has increased. One way to mitigate this is to reduce the subsidy, which should also be done in stages.
But if we reduce subsidy and the government’s expenses remains high, then there is no point,” he added.
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