KUALA LUMPUR, March 9 — The government will not implement the Goods and Service Tax (GST) by this year, Datuk Seri Ahmad Maslan said in Parliament today.
However, the deputy finance minister added that the government does not discount the possibility of rolling out a broad-based consumption tax eventually.
“The government is still studying and reviewing when is the right time. It's just that we can assure that GST will not be implemented this year,” he said.
He also stressed that the tax revenue would be returned to the lowest-income groups as the current government plans to do via various programmes to help reduce the poverty rate.
“Because of that, in the future, GST can help raise more revenue, and with more revenue, we can help the people who are in need.
“With GST, we can get rid of poverty, which is not only those whose income is (below) RM1,109, but also to help those who earn below RM2,208 if we have more funds (from the tax revenue),” he added in response to Jelutong MP RSN Rayer on the risk of the tax affecting the low-income group.
He also said that the government would collect RM25 billion more if GST were to be implemented compared to the current Sales and Service Tax (SST).
“RM50 billion minus RM25 billion is RM25 billion. That means, under SST, we are short of RM25 billion compared to GST,” he said.
Previously, Economic Affairs Minister Rafizi Ramli said the government could reinstate GST.
On February 28, Rafizi told a forum organised by a public servants’ alumni that rolling out the consumption tax “is a matter of timing”.
The Pandan MP once led a campaign against the Najib administration’s move to replace SST with GST.
However, he suggested to the audience comprising current and retired civil servants that he was not entirely against the consumption tax, but was instead opposed to its then premature implementation.
