MCA: “Reinstating GST a test of unity govt’s determination to initiate tax reforms”

THE unity government’s ability to respond to public opinion and recommence the Goods and Services Tax (GST) will demonstrate its will and courage for reforms, said an MCA leader.

According to party vice-president Datuk Lim Ban Hong, many tax experts and economists recognise the GST as a tax payment that is transparent with fewer loopholes for tax dodgers.

“GST widens the country’s revenue collection, improves the tax and financial situation to a large extent and reduces Malaysia’s reliance on taxes from petroleum and commodities.

“The GST also undertakes a balancing mainstay role when international oil prices and economic crises strike,” Lim said in a statement today (Sept 15).

He said major chambers of commerce including the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) and the Federation of Malaysian Manufacturers have therefore publicly called on the government to re-introduce GST as soon as possible.

Lim went on to note that whether the government should resume the GST is “no longer an issue in the business community” as the tax emphasises competitiveness and productivity.

“The implementation details that need to be discussed include whether the tax rate should be reduced to 4% from 6% as was the rate prior to the abolition of GST, and whether to implement accelerated tax rebates,” he remarked.

“An effective mechanism is needed to lighten the public’s cost of living burden and ease the pressure off cashflow operations of corporations.”

Lim pointed out that the Pakatan Harapan government had axed the GST as soon as it came into power in 2018 mainly due to “political considerations for short-term electoral gain” rather than for the long-term interests of the country.

“It is now incumbent on the unity government to put things in order soonest possible and not scrap beneficial policies executed by political opponents from the predecessor government due to narrow political vengeance,” he stressed.

“If the unity government is able to respond to public opinion and recommence the GST, this will demonstrate the unity government’s will and courage for reforms.” – Sept 15, 2023


Main pic credit: Majoriti

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