Government ready for GST-related price increases

Posted on 31 October 2013 - 11:02pm

KUALA LUMPUR (Oct 31, 2013): The government is ready to deal with any possibility of an increase in prices of goods and the inflation rate following the introduction of the goods and services tax (GST), said Deputy Minister of International Trade and Industry, Datuk Hamim Samuri.

"According to economic experts and other opinions, there will be a slight increase in the prices of goods during the transition stage, due to speculation and other factors," he added.

He told reporters this when met at the FMM National Export Conference, themed, "Driving Up Export Sales", here today.

He said the government had also provided for a long timeline of 17 months in preparation for implementation of the GST.

At the same time, he added, during the implementation of the GST, there will be a one-off payment of RM300 to all recipients of the 1Malaysia People's Aid (BR1M).

Asked about the implementation of the GST in the corporate sector, he said the tax system was more efficient and benefits the country.

The announcement on the GST in the Budget 2014 is in line with the government's aspiration to make Malaysia a nation with a "zero deficit" in 2020. – Bernama