Mass rally against GST, TPPA proposed at PAS Muktamar

Posted on 24 November 2013 - 11:46am

Last updated on 24 November 2013 - 01:57pm

Soo Wern Jun

newsdesk@thesundaily.com

SHAH ALAM (Nov 24, 2013): The PAS Central Committee and Ulama wing had proposed a motion to conduct a massive demonstration to protest against the government's action for introducing the Goods and Services Tax (GST), and issues involving corruption.

PAS deputy president Mohammad Sabu, popularly known as Mat Sabu, submitted the motion during the economic debate session at the party's 59th annual muktamar (conference) held at Stadium Malawati, Shah Alam in the presence of 1,129 delegates.

"Through this conference, we want to propose a mass public gathering that would include political parties, non-government organisations, and all related stakeholders where they can disclose all dishonest conducts revealed in the audit reports," he said.

Mat Sabu said the mass gathering will also be used as a tool to urge the government to withdraw its decision and desire to commit to the Trans Pacific Partnership Agreement (TPPA).

On October 25, 2013, Prime Minister Datuk Seri Najib Abdul Razak announced the implementation of GST during Budget 2014 which will take effect April 2015.

Mat Sabu said the government had trashed the public "upside down" and that Putrajaya had burdened people with the introduction of GST without suggesting any actions to eradicate corruption and leakage.

"This motion seeks to remind the government of how they have created unnecessary burden to the public with the GST and subsidy cuts, while exposing the public to more economic-related burden and hike in the inflation rate," he said.

The proposed motion also questioned the GST system which said to be contradictory to the Islamic tax principle.

Govt optimistic over GDP growth of 5.5% for next year

Posted on 21 November 2013 - 05:57pm

Last updated on 21 November 2013 - 07:15pm

KUALA LUMPUR (Nov 21, 2013): The government is optimistic over Malaysia notching a Gross Domestic Product (GDP) growth of 5.5% next year, driven by strong economic fundamentals and the many projects to further strengthen the economy.

Deputy Finance Minister Datuk Ahmad Maslan said the Malaysian economy is on track to achieve the full-year growth target of between 4.5% and 5.0% for 2013.

He said this at a media briefing here today on the one-day seminar on national economic empowerment, on Nov 24.

Ahmad said the seminar will cover three major agenda of the national economy, namely, the Budget 2014, economic empowerment of Bumiputera's and the Goods and Services Tax (GST).

It is being organised by the government following the announcement on the implementation of the GST on April 1, 2015.

The minister expressed confidence that through the seminar, 75% of Malaysians will understand the need and importance of implementing the GST.

The seminar will see 3,000 participants from among the political fraternity, community leaders, non-governmental organisations, government agencies and youths.

Similar seminars will also be held in other states such as Kelantan, Penang, and Selangor from mid-December to early February 2014.

"Experts will share insights on how to master the GST concepts and discuss opportunities, processes, challenges, as well as critical issues that can impact a business," Ahmad said. – Bernama

A ‘Shoppers Guide’ to show prices before and after GST —Customs

Posted on November 22, 2013, Friday

WHY GST: The participants listen to explanations by Noelle.

SIBU: The government will publish a ‘Shoppers’ Guide’ three months before the implementation of the Goods and Services Tax (GST) from April 2015 to protect the consumers.

State’s Customs Department senior assistant director Noelle Lily Rolland Morse said the step was for consumers to make comparison of prices of goods and services before and after GST implementation.

“Other than that, Customs Department as the implementing agency together with Ministry of Domestic Trade, Cooperatives and Consumerism, will monitor the prices of goods and services for one year after the implementation.

“We want to make sure retailers do not increase their prices indiscriminately,” she said when conducting ‘Budget 2014 and GST’ briefing at Kampong Nyabor Malay Union Club hall in Kampung Bandong here yesterday. It was organised by Information Department and attended by representatives from various government departments and agencies, non-governmental organisations and community leaders.

She said they would also engage cooperation from hypermarkets to be the price setter for the benefit of consumers.

“There will be an increase in prices of some goods and services such as non-alcoholic drinks, private education and private health and dining in restaurant or hotel.

“However, GST will not burden the people especially those from middle and lower income groups because it is not a new tax.

“It will replace the sales and services tax. It is not a cost for registered businesses as food and basic necessities are exempted from it,” she elaborated.

Furthermore, she said the Consumer Price Index will decrease for some items such as clothing, shoes as well as home decoration, maintenance and hardware.

Noelle said none of the some 160 countries that were using GST or also known as Value Added Tax (VAT) had abolished the system.

In fact, she said, the number of countries implementing the system increased every year from 140 countries in 2006 to more than 160 now.

“This means that the system is well accepted by people,” she said. “Of course, there are some who said it is not the right time to implement GST and that we should wait until we reach developed nation status.

“But the system is also used by underdeveloped countries like those in South America. In Southeast Asia, Malaysia is among three countries that have yet to implement GST.

“When we implement the system in 2015, be glad because our GST rate at six per cent will be the lowest among Asean countries using the system,” she said.

Read more: http://www.theborneopost.com/2013/11/22/a-shoppers-guide-to-show-prices-before-and-after-gst-customs/#ixzz2lc91o6o0

Pelawan rep tells how GST robs the poor to help the rich

Posted on November 23, 2013, Saturday

GOODS and Services Tax (GST) was termed as “a regressive tax to rob the poor to help the rich” in the State Legislative Assembly yesterday.

David Wong (DAP-Pelawan) said the new tax – scheduled for implementation in April 2015 – would widen the government’s tax base while reducing the tax proportionately for the higher income group.

He alleged the government was misleading the people by saying GST “is for the benefit of all as it is the best tax structure in the world”.

“The actual truth is it is good for the (BN) government as there will be more people to feed them. The low and middle income groups are made to pay tax once GST is implemented.

“These groups of people do not have to pay income taxes before GST, and after GST, even the poorest among the people will be forced to pay tax,” he said when debating the Supply (2014) Bill, 2013.

Wong claimed the government had decided to introduce GST due to the increasing operating expenditure from RM14 billion in 2003 to RM26 billion in 2008, and which would be further hiked up to RM36.6 billion next year.

He said the government ought to practise prudent spending rather than asking the people to tighten their belts.

Under the present tax system, he said those earning RM3,000 and below were not expected to pay tax. However, with GST, this group would have to pay tax based on their consumption, save for some exempted items.

Citing as an example, he said if one consumed RM2,000 a month, one would have to pay RM120 for GST, which would come up to RM1,440 a year.

“On the other hand, those making RM30,000 per month, their consumption may be RM10,000 while they invest the rest of their income. Strictly speaking, only one-third of their incomes are taxed under GST.”

He went on to claim that 80 per cent or 5.2 million Malaysian households would be affected by the implementation of GST.

“That is how serious it is and why we oppose the implementation of GST in the first place.”

On the abolished subsidy for sugar, Wong asked why the government was still maintaining the commodity on the price control list.

Since the government had decided to stop subsidising sugar, he said it should let the price float to pave way for competition so as to bring down the price of sugar.

Read more: http://www.theborneopost.com/2013/11/23/pelawan-rep-tells-how-gst-robs-the-poor-to-help-the-rich/#ixzz2lc9N837N

Sabah to retain State Sales Tax when GST implemented – Musa

Posted on November 22, 2013, Friday

KOTA KINABALU: Sabah will continue to collect revenues from the State Sales Tax (SST) when the Goods and Services Tax (GST) is implemented in 2015.

Chief Minister Datuk Seri Musa Aman yesterday said the Malaysia Tax Review Panel had informed the state government that GST would not be replacing the SST which is under the jurisdiction of the Sabah and Sarawak governments.

“As such, the state government will continue to collect its revenue like usual because SST is a resource under the jurisdiction of the Sabah and Sarawak governments as stipulated under the Federal Constitution.

“The sales tax which will be replaced by the GST are the ones under the federal level through the Sales Tax Act 1972,” said Musa, who is also the Finance Minister, in his winding-up speech on the last day of the State Assembly sitting.

He was replying to a question from Sri Tanjong assemblyman Chan Foong Hin (DAP) who took part in debating the 2014 State Budget.

The SST is imposed on crude palm oil, slot machines and lotteries.

“Expansion of the SST may burden the people, and this is the concern of the government, so we should be cautious in imposing any new taxes.

“Nevertheless, we are grateful for the concern of the Federal Government for not sidelining the state’s development by channeling billions of ringgit to improve the well-being of the people in the state,” he said.

Touching on the need for the government to issue new bonds in Budget 2014, Musa said the state government could not rely solely on traditional sources of finance as the pricing and commodity production were influenced by the global market and is beyond the control of the State Government.

“Therefore, the planned bond issuance in the 2014 Budget is essential to continue to develop the state,” he said.

On another development, Musa said the people’s interests and state’s progress were the basis taken into consideration when planning for the Sabah State Budget 2014.

“That is why the allocation for the Supply was higher compared to the state’s expenses. But, we believe that what is more vital is to ensure the delivery system is at a high level and efficient so the people would be able to enjoy the progress and well-planned development,” said Musa.

He added that in preparing the state budget, priorities were given to ensure that there is sufficient allocation on operations or recurrent expenditure.

“The recurrent expenditure is very important to ensure the maintenance and operation performed on the government’s service systems that have been developed and made available.

“It is unwise for the government to prepare and develop infrastructure and public facilities, but do not carry out maintenance.

“Under the allocation for the Supply Budget, it also includes provisions for the development of human capital and youth development. The government is giving serious attention to the development of both our human capital and youth as they are the backbone to the development of the present state, and ensure continued prosperity in the future.

“Therefore, there is no need to worry about the reduced spending and the perception that it would hinder the development of the economy as supply expenses also contribute to the state’s economy and bring positive economic chain,” said Musa.

He added that since 2014, that is the end of the 10th Malaysia Plan, the allocation for development was reduced by RM126.05 million or 9.5 per cent compared to this year’s funds.

“Most of the high-scaled projects planned under the 10MP are either completed or in the final stages of completion, thus contributing to the reduced allocation for development projects. Among the projects are the Sandakan Education Hub, Ranau Sports Complex, Kingfisher Bridge, construction of the Riverlock Segaliud Water Treatment Plant and Muka Saur or Water Intake Kasigui, to mention some.

“I would like to reiterate that the federal government has allocated a huge amount of allocation for development of the state over the years, and this has enabled to offset the expenses of the state’s development. This privilege is in return for our good relationship with the federal government.”

He said the RM4.62 billion state budget for next year would ensure better development for the sate and the well-being of the people.

“I hope everyone will play a role to ensure the 2014 State Budget’s objectives are met,” he said.

Read more: http://www.theborneopost.com/2013/11/22/sabah-to-retain-state-sales-tax-when-gst-implemented-musa/#ixzz2lc82TzqR

Double taxation in Sabah and Sarawak after GST?

Friday, November 22, 2013

Sabah and Sarawak could both retain their state sales and services tax (SST) even after the introduction of the Goods and services tax (GST) in 2015, following Sabah’s confirmation on the matter yesterday.

Sabah Chief Minister Musa Aman was quoted by the Borneo Post as saying that the SST, the prerogative for two East Malaysian state governments, will remain on top of the federal government's GST initiative.

“As such, the state government will continue to collect its revenue like usual because SST is a resource under the jurisdiction of the Sabah and Sarawak governments as stipulated under the federal constitution," Musa reportedly said during the state assembly sitting in Kota Kinabalu.

He also reportedly told the assembly that the Malaysia Tax Review Panel had informed him that the GST would not replace the SST in both Sabah and Sarawak.

“The sales tax which will be replaced by the GST are the ones under the federal level, through the Sales Tax Act 1972,” he was quoted as saying.

The SST, according to the report, is imposed on crude palm oil, slot machines and lotteries.

Msiakini