Malaysians can enjoy cheaper goods and services for many basic necessities if the government implements the goods and services tax (GST), replacing the existing sales and service tax (SST).
The tax, likely to be implemented by 2015, will see a proposed rate of four per cent to replace the current narrowly-applied 10 per cent sales tax and five per cent services tax.
The GST will be levied on the consumption of goods and services at all stages of the supply chain.
If implemented, some 40 basic food necessities, including rice, sugar, milk powder and flour will be listed as zero-tax items, while essential services, such as healthcare, may be classified as tax-exempt.
Most of the items are currently being taxed under the SST and the transition to GST could ease burden on the poor, Finance Ministry secretary-general Tan Sri Dr Mohamad Irwan Serigar Abdullah was quoted as saying.
The GST will ensure that the prices of the items will not increase. Besides that, not all products will be charged the full tax under the proposed GST as certain products will be charged only half of the GST rate.
"The GST is a must, it's not an option," Irwan Serigar said, adding that should the new tax regime be implemented, the government was confident of trimming the fiscal deficit of gross domestic product (GDP) by 2015 and hitting a surplus by 2020.
Meanwhile, MIDF Amanah Investment Bank Bhd senior vice-president and head of research, Zulkifli Hamzah, said although the implementation of GST was inflationary, it would only be in the short term as consumption patterns adjusted over time.
"We expect the GST to have a transitory inflationary impact on prices, similar to the evidence found in many countries which have introduced the tax.
"The inflationary impact of the GST will depend on the rate to be decided, exemptions and parallel measures to mitigate price rises," he told Bernama.
The Malaysian Customs Department is of the view that GST's inflationary impact will be minimal as basic and essential foodstuff will be zero-rated and public amenities will be exempted.
Another factor is the lower production cost as GST paid on inputs is claimable by businesses, while savings from the input tax credits should be passed on to the consumers in the form of lower prices.
GST, a broad-based consumption tax, or value-added tax, was first tabled at the Dewan Rakyat in Dec 16, 2009 to replace the current SST, but was withdrew last year for amendments.
The transition will be part of the fiscal reforms undertaken by the government to reduce fiscal deficits and achieve a neutral balanced budget by 2020, helping the country to move towards a high-income economy as well as to achieve a developed nation status.
Economist opined that now was the right time to implement the GST as part of efforts to bolster government revenue.
Once implemented at a revenue-neutral rate of four per cent, the new tax was estimated to rake in a revenue of RM18 billion, which was quite similar to the current revenue of RM16 billion to RM17 billion from sales and services taxes at an average rate of seven per cent.
It is anticipated that Prime Minister Datuk Seri Najib Tun Razak will announce the GST in the Budget 2014 on Oct 25.
The GST would take 14 months to be implemented after its announcement.
Bernama
Tue Oct 22 2013
![GST can make prices of goods, services cheaper GST can make prices of goods, services cheaper](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2013-07/81373530977_295x200.jpg)
![Bordeaux fail muflis Bordeaux fail muflis](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81722043252_TBFCGirondins.jpg)
Bordeaux fail muflis
Ditubuhkan pada 1881, FC Girondins de Bordeaux ialah salah satu kelab bola sepak paling terkenal di Perancis.
![Medan selera Taman Lembah Keramat terbakar Medan selera Taman Lembah Keramat terbakar](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51722042268_tbmedanselera.jpg)
Medan selera Taman Lembah Keramat terbakar
Kebakaran melibatkan bangunan kelas A yang dianggarkan musnah 80 peratus.
AWANI Pagi: Berita tumpuan & menarik di astroawani.com [27 Julai 2024]
Antara fokus Awani Pagi bersama Nursyazwani Saiful Sham & Azib Zikry
- Mahkamah: kes bunuh Nur Farah Kartini dan Zayn Rayyan
- Lapan kawasan rekod cuaca panas berjaga-jaga
- Sukan Olimpik Paris 2024 secara rasmi membuka tirai
- Mahkamah: kes bunuh Nur Farah Kartini dan Zayn Rayyan
- Lapan kawasan rekod cuaca panas berjaga-jaga
- Sukan Olimpik Paris 2024 secara rasmi membuka tirai
![Pemimpin Hamas meninggal dunia dalam tahanan Israel Pemimpin Hamas meninggal dunia dalam tahanan Israel](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51722040266_tbMustafaMuhammadA.jpg)
Pemimpin Hamas meninggal dunia dalam tahanan Israel
Mustafa Muhammad Abu Ara meninggal dunia selepas dipindahkan dari penjara di selatan Israel ke hospital.
![Lelaki buta mata selepas tampar lalat hinggap di muka Lelaki buta mata selepas tampar lalat hinggap di muka](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/41722039605_lelakibutalalat.jpg)
Lelaki buta mata selepas tampar lalat hinggap di muka
Wu dari Shenzen dilaporkan buta mata kiri selepas terkena jangkitan kuman dipercayai dibawa lalat itu.
![[KOLUMNIS] PRK Nenggiri: Petunjuk persepsi atau prestasi? [KOLUMNIS] PRK Nenggiri: Petunjuk persepsi atau prestasi?](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-12/81701508558_Jaripengundi.jpg)
[KOLUMNIS] PRK Nenggiri: Petunjuk persepsi atau prestasi?
Kali ini pada bulan Ogos 2024, ia adalah giliran Kelantan iaitu negeri yang masyhur dengan sejarah pemerintahan Paduka Seri Maharaja Puteri Cik Siti Wan Kembang.
![Olimpik Paris 2024: Judoka Iraq atlet pertama gagal ujian doping Olimpik Paris 2024: Judoka Iraq atlet pertama gagal ujian doping](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81722039538_tbPositivedoping.jpg)
Olimpik Paris 2024: Judoka Iraq atlet pertama gagal ujian doping
Judoka Iraq Sajjad Sehen menjadi atlet pertama yang gagal dalam ujian doping di Sukan Olimpik Paris.
![Perubahan iklim punca banjir buruk di Filipina Perubahan iklim punca banjir buruk di Filipina](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/41722038584_TyphoonGaemi.jpg)
Perubahan iklim punca banjir buruk di Filipina
Sekurang-kurangnya 14 orang terkorban, sementara lebih 600,000 yang lain hilang tempat tinggal akibat Taufan Gaemi.
![Bekas Menteri Siti Zaharah meninggal dunia Bekas Menteri Siti Zaharah meninggal dunia](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81722039049_TanSriDrSitiZaha.jpg)
Bekas Menteri Siti Zaharah meninggal dunia
Bekas Menteri Perpaduan Negara dan Pembangunan Masyarakat Tan Sri Dr Siti Zaharah Sulaiman meninggal dunia pada jam 11.23 malam tadi.
![Sumbangan PMKS kepada KDNK berkembang 5.0 peratus - Perangkaan Sumbangan PMKS kepada KDNK berkembang 5.0 peratus - Perangkaan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-06/51718005586_UzirMahidin.jpg)
Sumbangan PMKS kepada KDNK berkembang 5.0 peratus - Perangkaan
Sumbangan PMKS kepada KDNK mencatatkan pertumbuhan 5.0 peratus pada 2023 dengan nilai ditambah berjumlah RM613.1 bilion atau 39.1 peratus kepada ekonomi Malaysia.