No GST unless household income at least RM4,000 a month, says Opposition

Published: Wednesday October 23, 2013 MYT 2:34:00 PM 

Updated: Wednesday October 23, 2013 MYT 11:29:02 PM

BY LOSHANA K SHAGAR

KUALA LUMPUR: Pakatan Rakyat insists the goods and services tax (GST) not be implemented unless the minimum national household income is at least RM4,000 per household a month.

Wong Chen (PKR- Kelana Jaya) said this was necessary so as to absorb shocks to the people's purchasing power if GST is implemented, especially among the low and middle-income groups.

"Also, there should be adequately wide personal income tax bands and a publicly disclosed list of zero rated and exempted goods and services, particularly for basic necessities," he said at a press conference at Parliament lobby on Wednesday.

He also expressed concern over uncertainty whether the current sales and service tax (SST) will be abolished, and if the corporate and personal income tax will be simultaneously reduced if the government was to implement GST.

"GST may also begin in a recession year since the 'business cycle' seems to have shortened in recent times, from 10 years to seven.

"The last recession hit Malaysia in 2009, so there is a chance that the next recession may occur circa 2016, which is within a year of expected GST implementation," said Wong.