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Saturday, April 25, 2015

Tackle GST problems now, gov’t agencies told

Muhyiddin says Malaysian system of exemptions and zero-ratings is unlike any other.
muhyiddin gst
BUKIT MERTAJAM: Government agencies have been ordered to take immediate action to tackle problems encountered in implementing the Goods and Service Tax, deputy prime minister Muhyiddin Yassin said today.
He said he had spoken to the domestic trade minister, Hasan Malek, for legal action and enforcement to be carried out immediately.
“If it takes too long, the people will not see that offenders are being prosecuted commensurately,” he said here.
Problems had arisen out of confusion because Malaysia’s GST system was different in providing exemptions and a category of zero-rated products and services.
“No country in the world has GST like the one in Malaysia. We do it according to our own style. In the more than 160 countries where the GST is implemented, there are no exemptions, everything is subject to GST. That is where we are special,” he said.
“The people don’t understand why some goods are subject (to GST) while others are not. (In addition) why should there be the sales tax when the GST has been imposed. If in the past it was 10 + 5…now it is only six per cent.
“I received complaints that some people impose ‘over the path sales tax’ (exceeding the actual sales tax). This is not right,” he said.
He said GST was a bold move to create a tax structure that was most effective. Government agencies should give attention to all matters raised and complaints about implementation.
“This (initial implementation problem) was expected, to the extent there is dissatisfaction, feeling of unhappiness. If the dissatisfaction arises during the election campaign, this worries us. But we have to face it, we cannot retreat. This is a long-term decision that will benefit the nation and also the people,” he said.
“Although they are dissatisfied because they have to make payments (GST), at least they understand, and (the government must) find a way so that the implementation does not burden (the people) in the long run. Such matters must be explained,” he said.
Muhyiddin, who is Barisan Nasional deputy chairman, was here to support the nomination of the party’s candidate in the Permatang Pauh by-election on May 7. BN and Parti Rakyat Malaysia candidates and an independent who will challenge PKR president Ean Azizah Wan Ismail for the seat, last held by her husband Anwar Ibrahim.
-BERNAMA

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