Shafie: GST narrows down gap between incomes of the people

Posted on 5 May 2014 - 04:36pm

Last updated on 5 May 2014 - 05:39pm

ALOR GAJAH: The proposal to postpone the implementation of the Goods and Services Tax (GST) until the income gap between the people has been resolved is irrelevant because the tax itself can reduce the gap.

Rural and Regional Development Minister Datuk Seri Mohd Shafie Apdal (pix) said that an effective tax system under the GST would enable the nation to gain more revenue and the money could be utilised to improve the living condition of the people and raise their income.

He said the move to narrow down the gap between the people's income, especially between the urban and rural dwellers must be carried out immediately without waiting for certain factors to be carried out beforehand.

"The proposal is akin to the problem 'chicken or egg, which one must come first', although we don't have to wait for anything...through the GST, we have an opportunity to raise the people's income, we must immediately take this opportunity, why wait," he said at a media conference, here today.

Earlier, he opened the Chancellory Building of Risda College at the college campus in Ayer Pa'abas, here which was attended by Risda Director-General Datuk Wan Mohamad Zuki Mohamad, who is also the chairman of the college.

At the event, Risda College signed a memorandum of understanding (MoU) with Open Universiti Malaysia (OUM) for cooperation in the fields of education and management, which was signed by Wan Mohamad Zuki and OUM President, Prof Emeritus Tan Sri Anuwar Ali.

Mohd Shafie said the GST, through the tax exemption on certain food items could ease the burden of the people, and subsequently reduce the impact on the people's income. – Bernama