Raub Umno reps to explain GST to villagers

Published: Tuesday January 21, 2014 MYT 12:00:00 AM 

Updated: Tuesday January 21, 2014 MYT 8:04:24 AM

RAUB: All divisional leaders from Raub Umno will help explain the need to implement the Goods and Services Tax (GST) to the public next year.

Division chief Datuk Shahiruddin Ab Moin said he had instructed them to visit villages and give explanations to the grassroots.

“We want to assist the Government to allay public concern and answer their queries ahead of the implementation.

“This is important as the issue may be exploited by certain quarters to confuse the people and blame the Government,” he said after a closed-door meeting with division leaders here.

During the tabling of the Budget last October, Prime Minister Datuk Seri Najib Tun Razak announced the GST to take effect from April 1, 2015 at a rate of 6%, replacing the present sales tax and service tax.

GST is a consumption tax based on the value-added concept and imposed on goods and services at every production and distribution stage in the supply chain, including importation of goods and services.

However, certain basic necessities such as rice, sugar, flour, cooking oil, vegetable, fish and meat, eggs and essential services such as health and private education, public transportation, residential property and agricultural land are not subject to GST.

Shahiruddin, who is also the Dong assemblyman, said the aim of the GST was not to burden the public but the opposite as taxes on some goods would come down.

He said the fact that more than 165 countries worldwide had implemented the GST showed it was beneficial to the people at large.

“We should give our full support as not all goods and services are being taxed under the GST.

“I am confident the Government will continue to look after the interest and welfare of the lower income groups,” he said.

Citing an example, Shahiruddin said the Government had spent more than RM42bil in providing subsidy and ensuring certain basic necessities and food stuff were affordable to the people.

He said without subsidies, prices of goods and food stuff would be much higher and become a burden to the people.

Shahiruddin added that prices of certain products also could not remain the same all the time as it depended on supply and demand, weather and global economy.