GST is payment for 'free dinners'

GUEST COLUMNISTS

Monday, 07 October 2013 admin-s

But if the government cannot cut expenditure because it has to give
 "free dinners" every five years, Woo quipped, then it is basically imposing
such taxes to make people "pay for their dinners" after the election is over.

Himanshu Bhatt, fz.com

Slowly but surely, across the nation the jitters are rising as the days inch closer towards Oct 25 – when the Prime Minister is expected to announce a new Goods and Services Tax (GST) while tabling Budget 2014.

Many quarters are of course very worried about the burden of double or multiple taxes with the introduction of such a tax. There are also concerns that businesses will increase their prices and thereby create a spiral inflation effect.

Certainly, the burden will be biggest on the poor.

According to a study by the Penang Institute, the GST is expected to raise RM7.5 billion from households alone.

Assuming that the tax rate would be 7%, each household would end up paying RM104 per month on average.

This is based on the latest Household Expenditure Survey which says that the average household pays 4.41% of expenditure or 2.6% of income.

But there are wider implications, including inflation spiking by 3.86%.

Whatever the rate is, there is going to be a secondary impact, the study shows.

Dr Lim Kim Hwa, a fellow with the institute and a fellow in Finance and Financial Reporting at the University of Cambridge, recently said that passing on costs to consumers is a very likely consequence of the GST.

"It's the secondary impact, where people start passing the amount by charging more," he told a forum on the GST organised by the Penang Institute here, recently.

"After the implementation of the GST we expect there will be a sustained period of high inflation."

One important element is commercial property, Lim pointed out.

While residential properties will not be subjected to GST, nothing has been said of commercial properties.

"And that has implications," he said. For example, when owners add GST to rentals, it would definitely increase the cost of doing business in Malaysia.

Read more at: http://www.fz.com/content/gst-payment-free-dinners

GST positiive for economy, raises investor confidence

Business

News 2013-11-14 16:22

KUALA LUMPUR, Nov 14 (Bernama) -- Implementation of the goods and services tax (GST) is positive for the country's economy as it could help to strengthen the confidence of foreign investors, said Tax and Malaysia Sdn Bhd.

Co-founder and Chairman Dr Veerinderjeet Singh said the GST, also known as value added tax in several countries, has been implemented in developed nations and most external investors are well aware of how the system works.

Speaking to Bernama, he also said the implementation of GST would not "spook investors" or affect the flow of foreign direct investment into the country.

"It's (GST) not something new to them (investors) and they understand it very well.

"We are adopting a system that is understood worldwide, so in that sense it gives them confidence that we're changing to a system that they all know," he said on the sidelines of the Business Times Insight breakfast talk "GST: Are Malaysians Ready?" here today.

Veerinderjeet was one of the panelists at the quarterly event, which was also attended by Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

Replacing the existing sales and service tax, the GST will be implemented on April 1, 2015 at a fixed rate of six per cent.

The single tax regime is a fair and comprehensive tax system that would benefit all Malaysians as well as enable the government to address weaknesses in the current taxation system, said Prime Minister Datuk Seri Najib Tun Razak when tabling the 2014 Budget in the Dewan Rakyat on Oct 25.

Going forward, Veerinderjeet said Malaysia should reduce the corporate tax ate in order to attract more investments and stay competitive with other countries.

"We need to bring down the corporate tax to 20 per cent but it can't happen straight away, it can only happen years down the road.

"We are in a transition where we are trying to move our tax rates lower, but we can't because we need to build our revenue. However, eventually we will," he added.

In the budget, Najib, who is also Finance Minister, said the corporate tax rate will be reduced by one per cent to 24 per cent, with effect from the year of assessment 2016 onward.

This means company tax reduction will be effected only 1.5 years from the date of GST implementation.

Source: http://www.mysinchew.com/node/93791?tid=189

GST – Goods and services tax or government service tax?

Posted on November 15, 2013, Friday

Wan Ahmad Uzir
Wan Sulaiman

KUCHING: Does GST stand for goods and services tax or government service tax?

Now that the new tax system – goods and services tax has yet to be implemented, the GST consumers see in the

market should refer to government service tax.

This clarification came from state Domestic Trade, Cooperatives and Consumerism director Wan Ahmad Uzir Wan Sulaiman, who said no trader was allowed to collect goods and services tax since the implementation had been scheduled for 2015.

“Therefore, the GST people see should be government service tax, and not goods and services tax,” he said when contacted here yesterday.

Uzir said consumers could lodge a complaint with the department if they were asked to pay goods and services tax.

“The GST is probably government service tax. However, I cannot be too certain. As GST is not implemented yet, people can let us know if they are asked to pay before implementation,” he stated.

He was responding to a consumer, who said he was rather surprised to see a six per cent GST being imposed on desserts.

Requesting anonymity, the consumer said he spotted GST on the price tags at an outlet while shopping at a mall near here recently.

He said the government would implement GST only a year or so later and wondered why he had to pay for it then.

“To say I was surprised is an understatement. And I would not be too shocked if other consumers did not pay attention to those price tags, which say plus six per cent GST.

“Or people would not mind paying GST now? I do not know.

“To me, it is confusing since the government made it clear GST would start some time in 2015,” he said.

Then and there, he decided not to purchase any dessert. Neither did he ask the shop owner why consumers had to pay GST.

Prime Minister Datuk Seri Najib Tun Razak had announced when tabling Budget 2014 on Oct 25 that the GST would be implemented starting April 1, 2015.

The new tax system will replace the current 10 per cent sales tax and six per cent service tax.

Read more: http://www.theborneopost.com/2013/11/15/gst-goods-and-services-tax-or-government-service-tax/#ixzz2kfTONU5s

GST monitoring committee to be formed before year-end: Husni

Posted on 14 November 2013 - 12:47pm

Last updated on 14 November 2013 - 07:52pm

KUALA LUMPUR (Nov 14, 2013): The government is likely to form the Goods and Services Tax (GST) Monitoring Committee before year-end, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said today.

The committee, to be chaired by Husni, is being established to ensure the smooth implementation of the GST with members from government agencies as well as representative from industries and non-governmental organisations.

He was speaking to reporters this on the sidelines of the Business Times Insight, "GST: Are Malaysians Ready?" breakfast talk here today.

The GST is an integral component of a strategic fiscal reform package to fulfil a fundamental long-term structural evolutionary process of the national economy.

Announced by Prime Minister Datuk Seri Najib Tun Razak during the tabling of the Budget 2014 last month, the single tax GST which replaces the existing sales and service tax, will come into force on April 1, 2015, at the rate of 6%.

The GST is currently implemented in more than 160 countries, including less developed ones, at rates of between five to 27%. All countries in Asean have implemented the GST, except Brunei, Myanmar and Malaysia.

According to Husni, of all the countries that have implemented the GST, seven had rated it at 5%, six at 7% and the remaining at more than 10%.

"In countries that introduced the GST from 2010 onward, the minimum rate charged was at 12%.

"Under the current economic climate, we consider the 6% rate as being the lowest," he said.

Earlier in his address at the talk, Husni said with the implementation of the GST, Malaysia can remain competitive in the global markets.

At the same time, he added, the country can attract and retain sufficient talent to take it to the next level of economic development, as well as become an innovation nation embracing high productivity.

"In an increasingly competitive foreign direct investment climate, with more and more countries integrating themselves into the global economy, it is better for us to offer a lower, transparent certainty in our tax regime, and do away with cumbersome and bureaucratic exemptions, tax holidays and relief.

"The GST provides a comprehensive solution to these issues in so far as the Treasury's revenue is concerned," he added. – Bernama

Kaji cukai lain kukuh hasil

2013/11/15 - 05:21:48 AM 

Oleh Ahmad Fiesal Othman dan Shahrizan Salian

Status negara maju pada 2020 perlukan sistem percukaian sesuai

Kerajaan diminta mengkaji pelaksanaan beberapa sistem percukaian lain bagi mengukuhkan lagi asas pendapatan negara selepas mencapai status ekonomi maju pada 2020, kata seorang penasihat percukaian bebas tempatan. 

Pengerusi Taxand Malaysia, Dr Veerinderjeet Singh, berkata antara sistem percukaian yang wajar diberikan pertimbangan adalah cukai ke atas keuntungan modal (CGT) yang kini digunakan secara meluas di beberapa ekonomi maju seluruh dunia. 

“Malaysia tidak mempunyai sistem cukai sedemikian. Apa yang ada sekarang hanyalah Cukai Keuntungan Hartanah (RPGT) yang tujuan utamanya adalah untuk membendung spekulasi pasaran hartanah,” katanya semasa menjadi ahli panel pada siri diskusi ‘Business Times Insight’ bertajuk GST: Menyemarakkan Pertumbuhan Ekonomi dan Meningkatkan Daya Saing anjuran sisipan perniagaan akhbar New Straits Times (NST), di Petaling Jaya, semalam. 

Beliau berkata demikian ketika menjawab soalan daripada peserta sesi diskusi itu mengenai sama ada sistem cukai di negara ini perlu diperluaskan dengan menyasar golongan berpendapatan lebih tinggi.

Belum tiba masa

Veerinderjeet bagaimanapun menegaskan, status semasa Malaysia sebagai sebuah negara yang sedang pesat membangun belum menjadikannya masa yang sesuai kepada kerajaan melaksanakan sistem cukai sedemikian.

“Adalah perlu juga diingatkan bahawa Malaysia sedang bersaing untuk menarik pelaburan langsung asing (FDI) dan masih dalam proses memperkemaskan sistem percukaian keseluruhan yang membabitkan cukai korporat dan perseorangan. 

“Apabila Malaysia sudah mencapai tahap negara maju dan pembangunan rangka kerja institusi berada pada tempatnya, maka sistem cukai sedemikian perlu dipertimbangkan,” katanya.

CGT adalah satu bentuk cukai yang dikenakan ke atas keuntungan daripada sebarang modal dilabur menerusi penjualan aset dibeli pada harga lebih rendah berbanding jumlah yang diperoleh selepas ia dijual.

Antara keuntungan modal biasa yang dikenakan CGT di beberapa negara adalah daripada penjualan saham, bon, logam berharga dan hartanah.

Tidak semua negara di dunia mempunyai CGT dan kebanyakan negara yang melaksanakan cukai itu mengenakannya pada kadar berlainan antara individu dan syarikat.

Di Malaysia, CGT belum diperkenalkan bagi keuntungan yang diperoleh daripada penjualan saham, bon atau logam berharga.

Pendapatan negara meningkat

RPGT diperkenalkan pada 2010 yang tertakluk kepada hartanah yang dijual kurang daripada lima tahun daripada tarikh pembeliannya.

Dalam pembentangan Bajet 2014, kerajaan mengumumkan hartanah yang dijual dalam tempoh tiga tahun pertama dikenakan RPGT 30 peratus.

Ia peningkatan daripada 15 peratus hartanah yang dilupuskan dalam tempoh dua tahun pertama dalam Bajet 2013 dan 10 peratus bagi hartanah yang dilupuskan antara tahun ketiga dan kelima.

Rakyat perlu penerangan kesan laksana GST

2013/11/15 - 05:20:35 AM

Rakyat perlu diberi penerangan jelas mengenai Cukai Barang dan Perkhidmatan (GST) bagi memastikan mereka memahami mengenai langkah yang bakal dilaksanakan itu dan kesannya terhadap pengguna.

Setiausaha Agung dan Ketua Eksekutif Gabungan Persatuan Pengguna Malaysia (FOMCA), Datuk Paul Selvaraj, berkata kekeliruan pengguna mengenai GST menyebabkan sesetengah mereka beranggapan ia adalah adalah bentuk cukai baru sedangkan ia dilaksanakan menggantikan sistem cukai jualan dan perkhidmatan (SST) semasa. 

Beliau berkata, susulan itu ramai pengguna percaya bahawa pengenalan GST akan menyebabkan kenaikan harga barangan secara menyeluruh. 

“Kerajaan perlu memberikan penjelasan kepada semua lapisan masyarakat mengenai kesan sebenar GST ke atas harga barangan sama ada berkadar sifar, dikecualikan cukai atau dikenakan cukai,” katanya dalam program diskusi Business Times Insight di Petaling Jaya, semalam.

Selvaraj berkata, selain memberi penerangan jelas mengenai langkah yang akan dilaksanakan serta kesan GST, kerajaan juga perlu menyediakan panduan pembeli untuk memaklumkan kepada pengguna mengenai kesan perubahan harga yang sebenar apabila barang atau perkhidmatan terbabit dikenakan GST.

Wujud Jawatankuasa Pemantauan GST

2013/11/15 - 05:24:16 AM

Langkah pastikan sistem cukai dilaksana dengan lancar

Kerajaan akan menubuhkan Jawatankuasa Pemantauan Cukai Barangan dan Perkhidmatan (GST) sebelum akhir tahun ini bagi memastikan sistem percukaian baru itu dilaksanakan dengan lancar pada 1 April 2015 nanti. 

Menteri Kewangan Kedua, Datuk Seri Ahmad Husni Hanadzlah, berkata jawatankuasa yang akan dipengerusikan sendiri oleh beliau itu akan dianggotai beberapa menteri Kabinet, agensi kerajaan, pertubuhan bukan kerajaan (NGO) serta wakil daripada golongan rakyat. 

“Perkara paling penting mengenai GST ialah pelaksanaannya dan jawatankuasa ini ditubuhkan bagi memastikan kelancarannya kelak,” katanya. 

Beliau berkata demikian ketika ditemui media selepas menyampaikan ucaptama pada siri diskusi ‘Business Times Insight’ yang bertajuk GST: Menyemarakkan Pertumbuhan Ekonomi dan Meningkatkan Daya Saing anjuran sisipan perniagaan akhbar New Straits Times (NST) di Petaling Jaya, semalam. 

Yang turut hadir ialah Penasihat Cukai Pejabat Pelaksanaan GST Kementerian Kewangan, Datuk Kamariah Hussain;

Pengerusi The New Straits Times Press (M) Bhd (NSTP), Tan Sri Mohamed Jawhar Hassan; Ketua Eksekutif NSTP, Mohammad Azlan Abdullah dan Pengarang Urusan Kumpulan NSTP, Datuk Abdul Jalil Hamid.

‘GST benefits grossly overlooked’

By Rupa Damodaran

Published: 2013/11/15

SPIN-OFFS: Lower direct taxes will spur investments and savings, says minister

The goods and services tax (GST), the spin-off benefits of which have been largely ignored by critics, will offer opportunities to spur more growth and investments.

“We see the introduction of GST as an opportunity to lower the rates on direct taxes,” said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

He said studies have shown that lower direct taxes encourage both domestic and foreign direct investments and savings,

with the surplus funds channelled into domestic capital markets.

“These spin-off benefits are, in fact, the most important opportunities that GST brings us and they have been grossly overlooked by critics,” said Ahmad Husni in his keynote address at the Business Times Insight series on “GST: Are Malaysians Ready?”

Announced by Prime Minister Datuk Seri Najib Razak during the tabling of the 2014 Budget on October 25, the GST will come into

force on April 1 2015 at a rate of six per cent.

Ahmad Husni said the government is likely to form a GST monitoring committee before year-end. 

The committee, to be chaired by him, is to ensure GST's smooth implementation, with members from government agencies as well as representatives from industries and non-governmental organisations.

On the six per cent rate, Ahmad Husni said in countries where GST was introduced post-2010, the rate was 12 per cent, placing Malaysia's rate at the lowest.

"Also, most of the countries which introduced GST are those with a per capita income of less than US$1,000 (RM3,190)."

On concerns by exporters whether the GST would impact them, Ahmad Husni said it is zero-rated for all exports, unlike currently where some exports have sales and service tax embedded in a number of value-added inputs.

"The sales and service tax charged currently is not refundable. Under the GST, exporters can claim refunds on the tax paid. As such, exporters will be able to price their goods and services more competitively than before."

Yesterday's forum was the last of four which Business Times organised this year.

Read more: ‘GST benefits grossly overlooked’ http://www.btimes.com.my/articles/20131114234112/Article/#ixzz2kfXSzXDu

GST will have ripple effects on M'sian society - expert

KUALA LUMPUR - The challenge of the goods and services tax (GST) is not in its introduction, but the actual implementation where it will create both positive and negative ripple effects on society, a tax expert said.

"The government is trying its very best to gain acceptability in GST, which is a losing battle as tax has never been acceptable to any tax-paying member of society," Taxand Malaysia Sdn Bhd co-founder and chairman Dr Veerinderjeet Singh said.

He said the government's tolerance towards industries will create problems.

"Some ministers have actually said that they are willing to listen to some industries for exemptions and if this is allowed, it will never end," Dr Veerinderjeet said.

"No one likes paying tax and asking for zero-rated items means that you pay nothing, the government gets nothing, and paying nothing is not good for the nation that's already in a critical state of fiscal deficit.

"As it is, the list of zero-rated items is already quite extensive and my concern is that this list will grow longer, given the political climate of this country," he explained.

Dr Veerinderjeet said by allowing breaks on personal tax and an extensive list of zero-rated items, it is inadvertently minimising the potential generated revenue of the GST.

"There will be a lot of complaints when the GST is implemented, due to limited knowledge on the tax itself and unscrupulous traders, who instead of recalculating their products and services, will just charge the additional six per cent for profit.

"For the consumer side, I suggest that the government start a hotline for complaints. Consumers should be able to pick up the phone and make complaints if they think traders are taking advantage through the GST. The government has to do their part by following these complaints in order to protect the Malaysians," he said.

Full article: http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=187482:gst-will-have-ripple-effects-on-society-expert&Itemid=3#ixzz2kfbKj0Gs

Aeon Big eyes 1m card members by year-end

Posted on 15 November 2013 - 05:37am

Ee Ann Nee

sunbiz@thesundaily.com

From left: Aeon Big director Mitsuru Nakata, Oyama and Rashid
at the launch of the loyalty card yesterday

KUALA LUMPUR (Nov 15, 2013): Aeon Big (M) Sdn Bhd, a company under Japanese retailer Aeon Co Ltd, which operates the Aeon Big chain of hypermarkets and supermarkets in Malaysia, expects to sign up 1 million members for its newly-launched Aeon Big loyalty card by the end of this year, and contribute 3% to 5% to the company's sales growth.

Aeon Big managing director Nagahisa Oyama said Aeon Big member card holders are expected to generate 60% of its sales, similar to Jusco (now Aeon) card members which make up 60% of Aeon Co (M) Bhd's sales at its department stores.

Aeon Big started operations on Nov 1, 2012 and currently manages 28 Aeon Big (formerly Carrefour) outlets nationwide, consisting of 23 hypermarkets and five supermarkets.

Oyama said the company aims to open three outlets a year, which will require an investment of RM70 million to RM150 million per outlet.

On the forthcoming goods and services tax (GST), which is slated for April 1, 2015, he said Aeon Group has experience on the GST implementation in Japan, which increased from 3% to 8% over the years.

"With the GST, there is a big impact in terms of customers' behaviour. We're now preparing for the GST implementation," Oyama told reporters at the launch of the Aeon Big member card here yesterday.

He said Aeon Big attracts 3 million to 4 million shoppers per month at its outlets, with the Wangsa Maju outlet registering the highest sales and traffic. The Mid Valley Megamall outlet here registers some 200,000 customers per month.

The Aeon Big member card is free and offers customers one point with every ringgit spent at any Aeon Big store. Every 1,000 points collected is equivalent to a RM5 cash rebate.

Its director A. Rashid Adam said there is a possibility that the Aeon Big member card can be synergised in the future to include points collection and redemption from other retail outlets under the group.

GST monitoring committee to be formed before year-end, says Husni

14 November 2013| last updated at 01:05PM

KUALA LUMPUR: The government is likely to form the Goods and Services Tax (GST) Monitoring Committee before year-end, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said today.

The committee, to be chaired by Husni, is being established to ensure the smooth implementation of the GST with members from government agencies as well as representative from industries and non-governmental organisations.

He was speaking to reporters this on the sidelines of the Business Times Insight, GST:Are Malaysians Ready? breakfast talk here today.

The GST is an integral component of a strategic fiscal reform package to fulfill a fundamental long-term structural evolutionary process of the national economy.

Announced by Prime Minister Datuk Seri Najib Tun Razak during the tabling of the Budget 2014 last month, the single tax GST which replaces the existing sales and service tax, will come into force on April 1, 2015, at the rate of six per cent.

The GST is currently implemented in more than 160 countries, including less developed ones, at rates of between five to 27 per cent.

All countries in Asean have implemented the GST, except Brunei, Myanmar and Malaysia. 

According to Husni, of all the countries that have implemented the GST, seven had rated it at five per cent, six at seven per cent and the remaining at more than 10 per cent.

"In countries that introduced the GST from 2010 onward, the minimum rate charged was at 12 per cent.

"Under the current economic climate, we consider the six per cent rate as being the lowest," he said.

Earlier in his address at the talk, Husni said with the implementation of the GST, Malaysia can remain competitive in the global markets.

At the same time, he added, the country can attract and retain sufficient talent to take it to the next level of economic development, as well as become an innovation nation embracing high productivity.

"In an increasingly competitive foreign direct investment climate, with more and more countries integrating themselves into the global economy, it is better for us to offer a lower, transparent certainty in our tax regime, and do away with cumbersome and bureaucratic exemptions, tax holidays and relief.

"The GST provides a comprehensive solution to these issues in so far as the Treasury's revenue is concerned," he added. -- BERNAMA

Read more: GST monitoring committee to be formed before year-end, says Husni - Latest - New Straits Times http://www.nst.com.my/latest/gst-monitoring-committee-to-be-formed-before-year-end-says-husni-1.400772#ixzz2kfZCcp3b

GST will help reduce the 'black market' activities, says Ahmad

13 November 2013| last updated at 03:52PM

LABUAN: The implementation of goods and services tax (GST) will help reduce 'black economy' activities in the country, said Deputy Finance Minister, Datuk Ahmad Maslan.

He said such activities stood at 20-25 per cent now compared with some developed countries at 10-15 per cent.

"The GST will greatly reduce these activities, which had existed in many countries," he told Bernama yesterday.

Ahmad said aggressive measures to promote GST had started with the involvement of all relevant government machinery using websites, mainstream media and social media.

He said community leaders in the rural areas had also started to brief the people and pamphlets and brochures had been distributed.

Ahmad said the GST should have been implemented along with other 160 developing and developed countries.

"We are seven years late," he said. -- BERNAMA

Read more: GST will help reduce the 'black market' activities, says Ahmad - Latest - New Straits Times http://www.nst.com.my/latest/gst-will-help-reduce-the-black-market-activities-says-ahmad-1.399773#ixzz2kfYvEssv

Jawatankuasa pemantau GST dibentuk sebelum akhir tahun - Husni

2013/11/14 - 15:03:45 PM

KUALA LUMPUR: Kerajaan dijangka membentuk Jawatankuasa Pemantauan Cukai Barangan dan Perkhidmatan (GST) sebelum akhir tahun, kata Menteri Kewangan Kedua, Datuk Seri Ahmad Husni Hanadzlah hari ini. 

Jawatankuasa itu yang akan dipengerusikan oleh Husni, ditubuhkan bagi memastikan kelancaran pelaksanaan GST bersama anggota dari agensi kerajaan selain wakil industri dan organisasi bukan kerajaan. 

Beliau bercakap kepada pemberita ketika ditemui di luar perbincangan 'Business Times Insight, GST: Are Malaysians Ready?' di sini, hari ini. 

GST ialah komponen penting pakej pembaharuan fiskal yang strategik bagi memenuhi proses evolusi struktur jangka panjang ekonomi negara. 

Diumumkan oleh Perdana Menteri Datuk Seri Najib Razak semasa membentangkan Bajet 2014 bulan lalu, cukai tunggal GST ini yang akan menggantikan cukai jualan dan Perkhidmatan sedia ada, akan dikuatkuasakan pada 1 April, 2015, pada kadar enam peratus. 

GST kini dilaksanakan di lebih daripada 160 negara, termasuk negara kurang maju, pada kadar dari lima hingga 27 peratus. 

Semua negara di ASEAN sudah melaksanakan GST, kecuali Brunei, Myanmar dan Malaysia. 

Menurut Husni, semua negara yang sudah melaksanakan GST, tujuh menetapkan kadar lima peratus, enam negara sebanyak tujuh peratus dan bakinya mengutip lebih 10 peratus. 

"Di negara yang melaksanakan GST mulai 2010, kadar minimum yang dikenakan ialah 12 peratus. 

"Berdasarkan persekitaran ekonomi semasa, kerajaan menganggap enam peratus sebagai kadar paling rendah," katanya. 

Dalam ucapannya pada perbincangan itu, Husni berkata menerusi pelaksanaan GST, Malaysia mampu kekal kompetitif dalam pasaran global. 

Pada masa yang sama beliau berkata negara akan menarik dan mengekalkan bakat yang mencukupi bilangannya untuk membawa pembangunan ekonomi ke tahap yang lebih tinggi selain menjadi negara inovasi dengan produktiviti tinggi. 

"Dalam meningkatkan persekitaran pelaburan langsung asing yang kompetitif, lebih banyak negara akan bersepadu dalam ekonomi global, dan oleh itu adalah lebih baik untuk kita menawarkan ketelusan dan regim cukai yang rendah dan memansuhkan birokrasi serta pelepasan dan pengecualian cukai. 

"GST menawarkan penyelesaian menyeluruh kepada isu-isu terbabit serta perolehan Perbendaharaan," katanya. 

- BERNAMA

Penjelasan GST: Pelaksanaan elak aktiviti pasaran gelap

2013/11/14 - 06:48:34 AM

Labuan: Pelaksanaan cukai barang dan perkhidmatan (GST) akan membantu mengurangkan aktiviti pasaran gelap dalam negara, kata Timbalan Menteri Kewangan, Datuk Ahmad Maslan. 

Beliau berkata, aktiviti seumpama itu berada pada kadar 20 hingga 25 peratus sekarang berbanding beberapa negara maju pada 10 hingga 15 peratus. 

“GST dapat membantu mengurangkan aktiviti itu yang wujud di banyak negara,” katanya sambil menambah, langkah agresif untuk mempromosi GST bermula dengan pembabitan semua jentera kerajaan yang relevan termasuk menggunakan laman web, media arus perdana dan media sosial. 

Terlewat tujuh tahun 

Beliau berkata, pemimpin masyarakat di luar bandar juga mula memberi penerangan kepada rakyat dan mengedarkan risalah serta brosur mengenai sistem itu yang perlu dilaksanakan bersama-sama 160 negara membangun dan maju lain kerana Malaysia sudah terlewat tujuh tahun. 

Sementara itu, Ahmad berkata, kerajaan menerusi Unit Perancang Ekonomi (EPU) masih mengkaji cadangan pembinaan jambatan menghubungkan Labuan dan Sabah walaupun mendapat permintaan berulang kali daripada pelbagai pihak. 

“Ia masih pada peringkat EPU dan Kementerian Kewangan, tapi kami belum dapat memberi komitmen. Saranan berulang kali daripada pemimpin agar sebuah jambatan dibina, didengar di Dewan Rakyat dan Dewan Negara. 

“Kami faham permintaan itu serta keperluannya dan sedang mengkaji secara serius, tapi setakat ini, belum dapat memberi komitmen,” katanya. 

Ahmad berkata, Labuan dianggap sebagai ‘Mutiara Timur’ Malaysia kerana mempunyai pasaran tersendiri dan berpotensi bukan saja untuk menjadi hab minyak dan gas, tetapi juga pusat kewangan antarabangsa. 

Ditanya sama ada cukai berjuta-juta ringgit yang dikutip setiap tahun daripada syarikat minyak dan gas boleh membantu membiayai pembinaan jambatan itu, beliau berkata, jika ada dana mencukupi, permintaan itu akan lebih realistik, namun keputusan muktamad mengenainya adalah dari Putrajaya. 

Ahmad juga memberi jaminan Kementerian Kewangan sedia membantu Labuan mencapai cita-citanya untuk muncul sebagai hab minyak dan gas antarabangsa. 

Maju sektor gas, minyak 

“Kerajaan Persekutuan bersungguh-sungguh mengkaji untuk memajukan sektor minyak dan gas di Labuan. Dengan semakin bertambahnya bilangan peserta tempatan dan antarabangsa beroperasi di Labuan, kerajaan Persekutuan melalui Kementerian Kewangan, bersedia membantu menjadikan perancangan itu realiti,” katanya. 

Beliau berkata, penyertaan cergas peserta tempatan amat penting dalam membangunkan ekonomi pulau itu yang terletak di lokasi strategik dan dikelilingi telaga minyak yang menjadi petanda baik bagi kegiatan minyak dan gas. 

BERNAMA

Bank data diwujud kumpul harga barangan dan perkhidmatan

Publication: BH

Date of publication: Nov 14, 2013

Section heading: Main Section

Page number: 010

Byline / Author: Bernama

KUALA LUMPUR: Satu bank data akan diwujudkan bagi mengumpul maklumat harga barangan dan perkhidmatan masa kini untuk memastikan peniaga tidak mengambil kesempatan apabila Cukai Barangan dan Perkhidmatan (GST) dilaksanakan tahun depan. 

Menteri Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan, Datuk Hasan Malek, berkata data itu boleh membantu kerajaan memantau sekiranya ada peniaga cuba meraih keuntungan melampau kelak. 

Beliau berkata demikian ketika menggulung perbahasaan Rang Undang-undang Perbekalan 2014 bagi kementerian itu pada persidangan Dewan Rakyat di sini, hari ini. 

Hasan berkata undang-undang sedia ada seperti Akta Kawalan Harga dan Anti Pencatutan adalah mencukupi untuk mengawal dan memantau supaya harga barangan dan perkhidmatan tidak meningkat dengan melampau apabila GST dilaksanakan April 2015 nanti. 

Katanya, kempen penerangan kepada rakyat mengenai pelaksanaan GST diteruskan supaya rakyat faham mengenai cukai itu yang akan menggantikan cukai jualan dan perkhidmatan sedia ada. 

GST ditetapkan pada kadar enam peratus. - BERNAMA

`Data bank will stop price hikes'

Publication: NST

Date of publication: Nov 14, 2013

Section heading: Main Section

Page number: 022

Byline / Author: By Lavanya Lingan; Sameer Ahmed Shaikh

THE government will set up a data bank to monitor the prices of goods and services once GST (Goods and Services Tax) is implemented.

Domestic Trade and Consumer Affairs Minister Datuk Hasan Malek told the house yesterday that this would prevent traders from taking advantage of or abusing the system, which will come into effect in April 2015.

"The data bank can help the government in monitoring whether traders are up to their tricks or trying to reap excessive profits," said Hasan.

He added that laws, such as the Price Control and Anti-Profiteering Acts, were sufficient to address any price hike.

Hasan said continuous campaigns to educate the public on GST would be conducted, with information continued to be shared and distributed so that the public would understand what GST was all about.

Deputy Finance Minister Datuk Ahmad Maslan lauded the setting up of the data bank, saying it would help consumers and the government to monitor the prices of goods and services.

Ahmad, when met at Parliament lobby, described the move as brilliant. He said any price hike once GSTwas enforced would be temporary, based on the experience of other countries that had carried out the system. He added that with technology, the data bank could be made available to consumers.

"Through this, consumers can access and make comparisons of prices on their mobile phones. And if they find that the prices are excessive, they can complain to the Domestic Trade and Consumer Affairs Ministry."

Dearer homes in post-GST era, experts warn

BY OPALYN MOK

NOVEMBER 13, 2013

Rehda Penang chairman Datuk Jerry Chan said GST will increase the
cost of living and property prices. — Picture by K.E. Ooi

GEORGE TOWN, Nov 13 — House prices will surge once the Goods and Services Tax (GST) is implemented in 2015, property experts have said in a reminder to prospective homebuyers that although housing is GST-exempt, construction materials are subjected to the controversial consumption tax.

This will add further to the burden of rising living costs and a spike in inflation rates, they said, singling out lower-income earners as the group most likely to get the short end of the stick once the GST is put in place.

Real Estate and Housing Developers Association (Rehda) Penang branch chairman Datuk Jerry Chan said the impact of the yet-to-be implemented GST could even be felt now, due to general fear and anticipation.

“For sure the costs of living are going up and inflation is coming in but inflation is good for the property market,” he said.

A surge in inflation, he added, would also mean that prices of properties would increase.

“In time to come, property prices in the low medium end will continue to go up,” he said during the post-budget dialogue session with real estate agent, Henry Butcher, Hong Leong Bank and chartered accounting firm KPMG.

Agreeing, KPMG partner Ooi Kok Seng explained that although housing is GST-exempt, developers would still have to be charged the consumption tax for the purchase of building materials to construct the homes.

“We can’t run away from the implications of the GST,” he reasoned. “The magnitude of the impact to the property prices because of GST is serious, but it depends on how they manage their property taxes.”

“This is because developers will have to pay for the input tax (GST on materials for construction) but they can’t claim output tax as GST is not imposed on properties,” he said.

Both Chan and Ooi agreed that those in the lower income group would suffer greatly under the new tax system.

“They will suffer the impact more than the rich as even the handouts such as BR1M does not benefit all,” Chan said, referring to the Bantuan Rakyat 1 Malaysia cash handout.

During the tabling of Budget 2014 last month, Prime Minister Datuk Seri Najib Razak had announced that the GST would be implemented at 6 per cent starting in 2015, and that the consumption tax would replace the narrower sales and service tax of 16 per cent.

To cushion the blow of the GST and subsidy cuts, Najib also introduced other measures such as lowering income tax by 1 to 3 percentage points and increasing its cash handouts under the BR1M programme from RM500 to RM650 for households earning below RM3,000 monthly.

It also lowered the bar for entry to now include families earning up to RM4,000 a month, albeit at a lower payout of RM450. Unmarried individuals earning below RM2,000 will also receive RM300 each, up from RM250 previously.

But Ooi said today this would make little difference to those in the lower income bracket.

“Those earning less than RM3,000 per month don’t normally have to pay income tax but with GST, it means they now have to pay taxes for items such as clothing,” he pointed out.

KPMG partner Ooi Kok Seng said GST will have a significant
effect on the poor. — Picture by K.E. Ooi

Meanwhile, noting the top tier tax bracket of 26 per cent has been increased from RM100,000 to RM400,000, Ooi said this could translate up to RM7,200 in tax savings for those earning below RM400,000.

“This means they can spend up to RM120,000 per year on goods with GST and they won’t feel the pinch at all but it is not the same for the lower income group as they will now have to pay taxes through GST,” he said during the dialogue session.

But in the long term, however, Ooi admitted that the GST, along with the removal of subsidies, could be good for the country, provided the measures are implemented well and there are no leakages.

“Without subsidies, it would mean a free economy for the country which translates to higher income for Malaysians,” he said.

He believed that with GST, removal of subsidies, costs of living will increase and this will translate into the income levels moving up the value chain.

“Previously, with subsidies, there was no need for increase in salary as costs of living was lower but when the subsidies are removed, costs go up, naturally our income has to increase too,” he said.

For example, he pointed out that the professional fees for architects, surveyors, engineers and accountants in Malaysia are the lowest in this region.

“Even our GST is lowest in this region so in the long run, it will be good for the country provided that the leakages are looked into,” he said.

- See more at: http://www.themalaymailonline.com/malaysia/article/dearer-homes-in-post-gst-era-experts-warn#sthash.5IENjOuL.dpuf

GST atasi pasaran gelap

LABUAN 13 Nov. - Pelaksanaan cukai barang dan perkhidmatan (GST) akan membantu mengurangkan aktiviti 'pasaran gelap' dalam negara, kata Timbalan Menteri Kewangan, Datuk Ahmad Maslan.

Beliau berkata, aktiviti seumpama itu berada pada kadar 20-25 peratus sekarang berbanding beberapa negara maju pada 10-15 peratus.

"GST akan dapat membantu mengurangkan aktiviti itu yang wujud di banyak negara," katanya di sini semalam.

Ketika ini, hampir kesemua negara di dunia sama ada berstatus maju atau membangun telah mengguna pakai sistem cukai tersebut.

Secara puratanya kadar cukai GST yang diamalkan di negara-negara lain melebihi 10 peratus.

Malaysia yang akan menguatkuasakan GST pada 1 April 2015 pada kadar enam peratus, iaitu yang terendah daripada kalangan negara-negara ASEAN.

Ahmad berkata, langkah-langkah agresif untuk mempromosikan GST bermula dengan pembabitan semua jentera kerajaan yang relevan termasuk menggunakan laman web, media arus perdana dan media sosial.

Beliau berkata, pemimpin masyarakat di kawasan luar bandar juga telah mula memberi penerangan kepada rakyat dan mengedarkan risalah serta brosur.

Ahmad berkata, GST perlu dilaksanakan bersama-sama dengan 160 negara membangun dan maju lain.

"Kita lewat tujuh tahun," katanya. - BERNAMA

Artikel Penuh: http://www.utusan.com.my/utusan/Ekonomi/20131114/ek_01/GST-atasi-pasaran-gelap#ixzz2kZk63JZC

© Utusan Melayu (M) Bhd

GST: Bank Data juga akan diwujudkan

KUALA LUMPUR 13 Nov. - Sebuah Jawatankuasa Induk bagi mengkaji aspek perundangan, penguatkuasaan, penerangan, latihan serta data harga sebagai persediaan sebelum cukai barangan dan perkhidmatan (GST) dilaksanakan April 2015 telah ditubuhkan.

Selain itu, Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan juga memaklumkan bahawa Bank Data yang bakal menjadi asas rujukan dalam menentukan harga keuntungan munasabah untuk peniaga akan diwujudkan dalam masa terdekat.

Komitmen dan kesungguhan itu jelas membuktikan hasrat kerajaan untuk memastikan pengguna hanya mengalami kesan minimum daripada pelaksanaan GST apabila dikuatkuasa kelak di samping tekad untuk menambah baik sistem percukaian negara.

Pada masa yang sama, langkah berkenaan turut membuktikan dakwaan pembangkang kononnya GST yang menggantikan cukai jualan dan perkhidamatan (SST) dilaksanakan secara tergesa-gesa sebenarnya tidak benar malah meleset sama sekali.

Menurut Menteri Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan, Datuk Hasan Malek, langkah tersebut dilaksanakan secara bersama dengan penguatkuasaan undang-undang sekaligus menambahkan lagi keyakinan terhadap komitmen kerajaan.

"Jawatankuasa Induk ini turut dianggotai Kementerian Kewangan dan Jabatan Kastam Diraja Malaysia (Kastam) untuk merangka dan melaksanakan langkah-langkah persediaan bagi pelaksanaan GST. Jelas kita tidak terburu-buru melaksana GST.

"Kementerian juga akan mewujudkan Bank Data bagi menyimpan data harga barangan yang akan digunakan sebagai asas penentuan harga keuntungan yang boleh dianggap munasabah. Maklumat ini akan digunakan untuk menetapkan mekanisma pencatutan.

"Kerajaan yakin melalui usaha-usaha ini yang dilaksanakan seiring dengan penguatkuasaan, kesan GST kepada kenaikan harga barang dan perkhidmatan adalah mininum," katanya ketika menggulung perbahasan kementerian itu di Dewan Rakyat, hari ini.

Artikel Penuh: http://www.utusan.com.my/utusan/Parlimen/20131114/pa_03/GST:-Bank-Data-juga-akan-diwujudkan#ixzz2kZkTD5VQ

© Utusan Melayu (M) Bhd

'IMF approves of GST plan'

13 November 2013| last updated at 11:34PM

SHAH ALAM: The government's efforts to disseminate information on the implementation of the goods and services tax (GST) has received positive response from economic analysts, economists and business circles.

Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar said promoting GST through the mass media, especially television and newspapers, was aimed at educating the public on the difference between GST and current taxes.

"It is our responsibility to inform the public so that they will understand the impact of GST on their lives instead of just subscribing to the opinions of those against it.

"The GST rate of six per cent is reasonable compared with other Asean countries that have imposed a seven to 12 per cent rate," he said at the launch of the Sector Focused Career Fair at Universiti Teknologi Mara (UiTM). The fair was organised by Talent Corporation Malaysia Bhd.

Wahid said the implementation of GST from April 1, 2015, would provide a positive impact on the country's finances even after the reduction of individual and corporate taxes and the government's pledge to continue providing 1Malaysia People's Aid (BR1M)

"I was in New York for two days last week and met a number of significant fund managers.

"They welcomed our country's effort to reduce the fiscal deficit and introduce GST.

"In my meeting with the International Monetary Fund, they said they had been waiting for us to implement GST and considered our 2014 Budget as the breakthrough budget for Malaysia."

On the fair, Wahid said it provided a platform for potential employers to meet employees.

"What UiTM is doing is commendable as they are helping their graduates secure a better future.

"I was told that the event had received an overwhelming response as students from Universiti Malaysia Kelantan came in in four buses to participate."

Read more: 'IMF approves of GST plan' - General - New Straits Times http://www.nst.com.my/nation/general/imf-approves-of-gst-plan-1.399319#ixzz2kZsDgaNo

GST Bill likely ready by year-end

Posted on 13 November 2013 - 05:40am

Eva Yeong

sunbiz@thesundaily.com

PETALING JAYA (Nov 13, 2013): The Goods and Services Tax (GST) Bill will be ready by year-end or early 2014, with relatively few changes from that tabled in 2009, said Finance Ministry GST Implementation Office tax advisor Datuk Kamariah Hussain.

She said the Royal Malaysian Customs Department's computer system is ready for GST implementation and will go live by year-end.

"We ran a pilot programme in 2012 and early 2013 where 200 companies were involved. It was a success and end of this year, we will do another dry run. The GST processing centre in Kelana Jaya (Selangor) is ready," she said during a panel discussion entitled "GST: A boon or bane?" at Deloitte TaxMax 2013 seminar yesterday.

She also said that 76 industry guides will be issued by year-end. To date, about 30 guides have been uploaded on the Customs Department website.

Kamariah said it is also in the process of training customs officers on the ground in preparation for GST implementation.

"Customs officers should be ready for everything by the middle of next year," she added.

The GST, which will be implemented in April 2015, may lead to a hike in house prices of 3% to 4%, said Deloitte Malaysia country tax leader Yee Wing Peng.

"Whatever GST the developer incurred cannot be passed on to the house buyers, thus they would impute the cost into the selling price," he said at the seminar.

"As a result, the price of houses will increase by 3% to 4%. We would have to deal with the impact caused by GST not just on the property sector, but across the board. Most of the goods and services will also see price hikes," he added.

However, Yee sees any increase in house prices will not exceed 6% as developers' margins should not have any GST element.

"So it's only the cost like labour and building materials where there's input tax borne by the developer which cannot be passed on to buyers," he said.

He believes that a way to deal with the increase is by providing GST rebates or financial assistance such as those offered to developers who build affordable homes.

Ekovest shareholders approve DUKE Phase-2

Posted on 14 November 2013 - 05:37am

Liew Jia Teng

sunbiz@thesundaily.com

KUALA LUMPUR (Nov 14, 2013): Builder Ekovest Bhd, controlled by property tycoon Tan Sri Lim Kang Hoo, has submitted proposals to the government for two highway extension projects in the southern Kuala Lumpur region worth about RM2 billion.

"We've submitted the proposals and are waiting for the government's response. Hopefully, we'll hear from them within six months," said Ekovest managing director Lim Keng Cheng (pix), who is the nephew of Kang Hoo.

"We're quite positive (of clinching) at least one more (highway extension project), but there's a lot of competition. Many other proposals would have been submitted (by Ekovest competitors) too," he told a press briefing after the group's EGM here yesterday.

At the meeting, Ekovest shareholders approved the proposed extension of the Duta-Ulu Kelang Expressway (DUKE Phase-2) costing RM1.18 billion, which comprises two additional links, namely, the 7km Sri Damansara link and the 9km Tun Razak link.

Ekovest, which is the master contractor for DUKE Phase-2, is expecting a profit margin of some 15% from the project.

"We'll supervise the project ourselves and we want to make sure there'll be no delay. We know we will own the highway for the next 50 years, so we want to make sure the building materials that we use are long-lasting," said Keng Cheng.

DUKE Phase-2 involves the construction of an elevated highway that will complement the existing DUKE. The extension starts from the Menjalara interchange at Bandar Menjalara and ends at the Segambut interchange for the Sri Damansara link and from Jalan Tun Razak and ends at Jalan Gombak for the Tun Razak link in Kuala Lumpur.

Ekovest has a 70% stake in DUKE through Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd. It is a 54-year concession ending in 2059.

"We'll expand the (DUKE) concession. We're definitely not stopping at (the construction of) DUKE Phase-2," said Keng Cheng.

He added that the existing DUKE is alleviating traffic congestion in the northern part of Kuala Lumpur, and this will be extended down south.

Keng Cheng said construction of DUKE Phase-2 will begin at the end of 2013, and will last three years. "All preliminary works have been done. The actual physical work will start within two weeks."

On another issue, Keng Cheng doesn't see the forthcoming implementation of the goods and services tax (GST) having a major impact on Ekovest.

"Toll revenue from the highway is tax exempted. Besides, we can easily lock in the price of building materials," he said.

For the financial year ended June 30, 2013 (FY13), Ekovest's construction business contributed 86% of the group's revenue, with the concession business making up the rest.

Going forward, Ekovest is diversifying into property business, as well as growing its concession business.

"The ideal ratio that we aim to achieve in two years is 30% from the construction business, another 30% from the concession business, and the remaining 40% from the property business," said Keng Cheng.

By 2020, Ekovest targets to launch property projects with a combined gross development value (GDV) of RM6 billion in Kuala Lumpur.

The group currently has a construction order book of RM2.24 billion.

Meanwhile, Keng Cheng stays mum on news reports that Iskandar Waterfront Holdings Sdn Bhd (IWH) would delay its initial public offering of up to US$300 million.

"I have no comment. All I can say is, I'm one of the directors in IWH, and I own a small portion of shares in the company," he said.

It was reported that IWH, which is 60% indirectly owned by Kang Hoo, has postponed its IPO to the fourth quarter of 2014, a year later than initially planned, on concerns that government measures to rein in property prices would slow demand from foreigners.

On that, Keng Cheng, said to put IWH's IPO in the same context with the curbing measures is "not a fair statement" and "not true".

He said the impact of the revised real property gains tax (RPGT) is immaterial.

"The whole world is doing that. When the property market is too hot, the government will try to do something. I always tell my home buyers, it's just a psychological impact. After a while, the fear will disappear," said Keng Cheng.

For the genuine home buyers, he said, as long as the price is right and the location is good, it can never go wrong and they should not be worry about the RPGT.

“Middle and low-income earners will be hardest hit by GST”

BY LOOI SUE-CHERN

NOVEMBER 12, 2013

The introduction of the Goods and Services Tax (GST) will, in the long run, bring about higher wages but low and middle-income wage earners will have to brace themselves until that happens.

Chartered accountant Ooi Kok Seng said only the rich, like those earning RM400,000 and above annually, would not be too affected by the new 6% tax.

He said those earning over RM400,000 a year and who are in the top tier tax bracket of 24%, would still have RM7,200 in tax savings.

This translates into them affording RM120,000 worth of GST-imposed purchases annually, he said.

"So, the GST will not impact them. But people earning RM3,000 a month, who may not have to pay income tax at present depending on their deductions, will have to start paying tax.

"They will have to pay tax for buying things like clothes. Even school bus fares for their children will be more expensive because of the GST," said Ooi, a partner at KPMG chartered accountant firm.

While there will be exemptions on basic food items, transportation services, highway tolls, water and the first 200 units of electricity for domestic users per month, Ooi said consumers would have to face profiteering by small businesses that would blame the GST and up the prices of their goods.

He said cost of living would go up in the long term, following the implementation of the GST and the gradual removal of subsidies, hence wages would have to be increased in order for the people to survive.

"GST is the right step. We cannot be wrong to implement it when over 100 countries have done it. We need to look at it in good faith as it will make Malaysia more competitive.

"However, it has to be implemented efficiently and leakages must be addressed by the government," he said during a post-2014 Budget talk organised by Henry Butcher Malaysia (Penang) today.

Ooi's remarks contradict Minister in the Prime Minister's Department Datuk Seri Idris Jala’s recent claims that the GST would mostly affect the rich. Idris's statement was rebutted by several opposition politicians and think-tank Penang Institute.

The lower and middle-income earners would also have to reckon with rising prices of properties, which would continue with the GST bringing inflation along with it.

Penang Real Estate and Housing Developers' Association chairman Datuk Jerry Chan said in the long run, low and middle-end properties would be more expensive.

"For the property developer, the investors and the sector, the inflation is good as prices will continue to climb. Properties will become the hedge.

"This is provided that banks do not do anything silly," he quipped, meaning tightening loan regulations and the like.

Chan also agreed with Ooi that low and middle wage earners would be most affected by the GST, now that "everybody is caught in the net".

"When people buy engine oil or change new car tyres, they will have to pay GST," he said.

During the talk, Chan also said the proposal to impose a 3% levy on foreigners buying property in Penang starting next year was "politically correct" and would not be a huge deterrent to control the hike in property prices in the state.

He said foreign buyers would still find the properties here cheaper than those in Singapore or Hong Kong but there could be a spurt in purchases by foreigners before the year ended.

"We do not want to discriminate foreigners but let us look at the impact first before we fiddle with the figures.

"But 3% is liveable for foreigners," he said, adding that Penang was still attractive to property buyers.

"Penang is a real rojak in a nice way but the state needs to be promoted further," he said. - November 12, 2013.