GST beneficial to public, Muslims told in Friday sermon

APRIL 11, 2014

The nation’s foremost religious authority defended the GST to
Muslims nationwide today in its official Friday sermon.— AFP pic

KUALA LUMPUR, April 11 — The nation’s foremost religious authority defended the Goods and Services Tax (GST) to Muslims nationwide today, saying in its official Friday sermon that the consumption tax is beneficial to the public.

The sermon also insisted that the tax is progressive, which means the poor will pay less than the rich, and will not burden the public as it is more effective, fair, efficient and transparent.

“Fellow Muslims, let us take a breath of wisdom, and find the real information,” said the sermon prepared by the Malaysian Islamic Development Department (Jakim) today.

“Believe it, that the implementation of GST is to strengthen the economy and to ensure the interests and well-being of the public.”

The sermon also insisted that the GST will result in more competitive pricing for goods, as it abolishes the previous sales and services tax.

In the sermon titled “Memperkasa Ekonomi Ummah” (Strengthening the economy of the community), Muslims were urged to pay any taxes that had been set by a ruler.

It said that the transfer of assets by the way of a ruler’s taxation system is allowed in the Islamic moral code.

After just two days of debate, the controversial GST Bill was passed in Dewan Rakyat, the lower house of parliament, with 119 votes for and 81 votes against on Monday.

The Bill also went through the committee stage reading with no amendments, ensuring that the consumption tax starts at a flat rate of six per cent beginning April 1 next year.

The tax is expected to help Prime Minister Datuk Seri Najib Razak’s administration rein in spending and tackle the government’s chronic budget deficit.

The GST is a consumption tax, meaning all Malaysians will be taxed according to their level of spending, regardless of income. This differs from income tax that is only applicable after a certain salary level is exceeded.

Putrajaya is expected to reap an extra RM22 billion from its implementation.

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