GST reintroduction still being studied – Tengku Zafrul

GST reintroduction still being studied – Tengku Zafrul

The government says it is still studying all tax systems around the world, including the goods and services tax (GST), to decide whether or not to reintroduce GST in the country. If it does eventually come about, it won’t be anytime this year.

According to finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, the study was at the engagement stage. “If the study finds that the GST benefits are clear, we will take it to the cabinet. The final decision is not for the government to make, it’s for the parliament,” he said.

He added any process to reintroduce the GST would take some time as the tax had been abolished, and the fastest it could be reintroduced is about nine months after it gets the green light from the parliament, as Bernama reports.

Tengku Zafrul said the government was looking for an alternative to improve the existing sales and services tax (SST) which had been rendered inefficient and caused many countries to introduce the GST. He said among the issues being studied was to ascertain a fair rate for the tax regime.

GST reintroduction still being studied – Tengku Zafrul

Asked about the fair rate of GST, he said whatever it is, it should be able to generate a higher revenue than the existing tax system. “There should be a study on the fair rate so as to generate revenue for the country’s development, while at the same time ensuring that it will not burden the people and the business community,” he said.

The GST, which is a value-added tax where tax is paid at every stage of the business transaction versus SST’s one-time tax that is paid by the manufacturer/importer, was introduced in April 2015 at a rate of 6%. It was abolished in favour of SST again in September 2018 when Pakatan Harapan came into power.

Last week, the Federation of Malaysian Manufacturers (FMM) said it supported the move to reintroduce GST, but suggested that the implementation be done at a rate of 4%. Doing so would promote conducive business conditions and also provide higher disposable income for the rakyat, the association said.

Car prices are expected to be affected by a switch in the tax regime. According to an AmInvestment Bank analyst, car prices in Malaysia are anticipated to increase by 1% to 3% should the government switch back to the GST, which is the opposite of what happened when the SST was implemented back in 2018.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Tortilla on Jun 10, 2022 at 10:24 am

    Sendiri T01 should satisfy, lead the country.
    Teach everyone how to fish, not feeding fish…
    Leader don’t need play bully to T20.

    GST if implemented, must have backup plan –
    More job oppurtunity boosting for the whole Malaysia,
    Not just give burden and meaningless subsidy.
    Ppl want to learn to fish like T01, not get fish from T01.

    Like or Dislike: Thumb up 28 Thumb down 2
    • Eat My Smoke on Jun 10, 2022 at 11:14 am

      Jaga kos subsidy dulu lah

      Now 65% more RON97 users switching to RON95 will burden gomen even more subsidy(every liter >RM1.70 in early April). Literally gomen is paying more for every litre we buy RON95 now

      So to resolve traffic jams and promote public transport usage, gomen please market-float RON95 @RM4.50

      Once fuel subsidy is removed, whatever foreign vehicles pump also OK. Anyway our EURO4 fuel is cheaper than EURO6 in SG

      Like or Dislike: Thumb up 26 Thumb down 12
      • RyanT on Jun 10, 2022 at 12:04 pm

        Do u know if rm4.5/l for ron95, what will happen to inflation? Otak masuk air kot

        Like or Dislike: Thumb up 13 Thumb down 19
        • Civic Turbo 2018 on Jun 10, 2022 at 4:39 pm

          No money take public transport lo
          #LoveMalaysia
          #SaveMalaysia

          Like or Dislike: Thumb up 10 Thumb down 5
          • RyanT on Jun 11, 2022 at 11:44 am

            Your mindset will be stuck on civic level…lol

            Like or Dislike: Thumb up 0 Thumb down 0
      • munkay on Jun 10, 2022 at 4:44 pm

        bro I support you, should float all petrol but by the same token, car prices also must float – no more AP, excise, import tax

        Like or Dislike: Thumb up 29 Thumb down 16
        • AutoWalk on Jun 10, 2022 at 6:45 pm

          But not at the moment, government needs money for necessity items and fuels. Importantly, should get rid pollution and reduce traffic jam first.

          Like or Dislike: Thumb up 19 Thumb down 0
    • Dredd on Jun 10, 2022 at 12:42 pm

      If its to stop T20s breaking the LAW. DREDD AGREES TO GST
      https://paultan.org/2022/06/10/t20-in-malaysia-more-likely-to-have-cars-with-illegal-number-plates-window-tint-above-limits-study-finds/

      Like or Dislike: Thumb up 11 Thumb down 2
    • Tom Cruise maverick on Jun 10, 2022 at 1:51 pm

      Again,this dude ‘kami akan memantau” like the siongsiong dude.
      Being studied
      Still studying
      Dont know when finish studying,no time frame given
      At last studying suspended,PN revolt,sidedoor garmen collapse,regime change again.Possible?Very soon,we will be like Jepun those early years when garmen change every year.

      Like or Dislike: Thumb up 8 Thumb down 8
      • Lets See on Jun 10, 2022 at 5:25 pm

        This fellow is talking nonsense, is our resident Russki cybertroll. apa2 pun nid to bring in Putin, politics, kebodohan sendiri etc. he is oso racist against our majority friends! just dun layan him.

        Like or Dislike: Thumb up 10 Thumb down 4
      • Copy Paste on Jun 11, 2022 at 11:12 am

        Copy paste: “Tokok troller masih mabuk”

        Like or Dislike: Thumb up 3 Thumb down 0
  • Hisham Liew on Jun 10, 2022 at 10:29 am

    There should be a study on the fair rate so as to generate revenue for the country’s development, while at the same time ensuring that it will not burden the people and the business community,” he said.

    Now, another Ministry in Malaysia Learn Fast and admit mistake.

    Maju Malaysia.

    Like or Dislike: Thumb up 9 Thumb down 16
  • Anonymous on Jun 10, 2022 at 10:46 am

    Naaaaahhh… GST is not coming back anytime soon… not with this current govt.

    Too many Ministers within its own Cabinet had opposed, campaigned and voted in Parliament to abolish it in the first place. They can’t be seen as flip-flopping.
    Furthermore… BN does not have the majority support in Parliament to push the bill reintroducing GST.

    All this talk is just to show as if they are doing something to boost the economy. Its just that… talk. WAYANG.

    Like or Dislike: Thumb up 8 Thumb down 0
    • Ajibkor & Hamidikor on Jun 10, 2022 at 1:44 pm

      Having u been to a hellhole money pit mechanic?
      He will tell u radiator,thermostat housing,throttle body,no good liow..change lah,nanti stranded on the highway…In actual fact semua boleh pakai lagi.
      The dude exaggerate this and that to scare the hell out of the poor covid stricken rakyat.
      If he and Sabrikor so damn gungho,pls launch GST and abolish fuel subsidy now.We dare you.Dont tokok and chicken out at the slightest backlash like KJ’s dad in law.

      Like or Dislike: Thumb up 3 Thumb down 7
  • Why speak like we all have amnesia? GST was implemented before. So u mean to say earlier implementation no study at all? It’s different when u need to study the appropriate rate to charge, but GST is NOT new! Anyway, u hv no proper and effective plan to revive the economy, your political survival depends heavily on the much flawed subsidy system, what else can u do when u hv no more income coming in but still u spend with water running freely on opened tap? Money ain’t grow on the trees, u should know by now.

    Like or Dislike: Thumb up 22 Thumb down 1
  • Risky Risky on Jun 10, 2022 at 11:15 am

    Just stick with SST. Later with GST, will have big problem and prices for essential goods including food and drinks will go up

    Like or Dislike: Thumb up 8 Thumb down 17
  • After the coming next GE, no need to consider and will implement immediately. Petrol no subsidize, reintroduce GST, increase of electricity charge, all will be followed.

    We vote MB to form government that help us solve problem. Government supposed to generate income and develop country. But what I see is when government fail to generate income, it is trying to take money from us. I do not mind to remove subsidiary. Because subsidiary is given when country is afford, not take money fromn those people for their hard earned money and subsidize those lazy.

    Like or Dislike: Thumb up 20 Thumb down 9
    • hmmmm. 12 likes n 6 dislikes. I guess abt 1/3 Malaysians is lazy and always hope for help and not working hard to get what they want.

      Like or Dislike: Thumb up 2 Thumb down 0
      • Casual reader on Jun 12, 2022 at 1:39 pm

        Is that how you base your reasoning? You just got 12 singaporeans that supported and majority of malaysians that don’t to read your drivel

        Like or Dislike: Thumb up 2 Thumb down 1
    • Spin Too Much on Jun 11, 2022 at 10:45 am

      OK for you what. Your Sinkie Gomen make problem for you you and raising COE topkek high but you still can come here pump our cheap petrol what. Apa Sinkie lagi mau?

      Like or Dislike: Thumb up 6 Thumb down 5
      • I am Malaysian, if govetnment gives subsidiary, why I can not enjoy? I pay income tax, not like certain people never need to pay income tax but still so thick face to enjoy the subsidiary!

        Like or Dislike: Thumb up 2 Thumb down 4
        • Amran on Jun 13, 2022 at 1:01 am

          Ye lah tuu. Protecting Singkie so much tau je lah kita ko ni siapa.

          Like or Dislike: Thumb up 2 Thumb down 1
 

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