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Pertunas welcomes govt's willingness to study GST re-introduction
KUALA TERENGGANU, Oct 3 -- Persatuan Tunas Usahawan Nasional (Pertunas) has welcomed the government’s willingness to consider the re-introduction of the Goods and Services Tax (GST).
Its secretary-general, Nurliana Muhammad said however, the GST should be re-implemented at a lower rate than before to offset a direct impact on the bottom 40 per cent of the household income group (B40).
"The GST re-implementation study is timely as it has proved to be a more effective and efficient tax system to replace the current Sales and Service Tax (SST).
"I believe Malaysians are mature enough and understand the need to bring back the GST to ensure that the country could balance the economic ecosystem in the long run,” she said in a statement today.
Prime Minister Tun Dr Mahathir Mohamad said today that the government will study the need to re-introduce the GST if that is what the people want.
“If the people believe the GST is better, we will study it,” he said when commenting on a suggestion from the Malaysian Institute of Economic Research (MIER) for the re-introduction of the GST in the 2020 Budget but at a lower rate of 3.0 per cent instead of 6.0 per cent previously.
However, Dr Mahathir said the re-implement the tax system could not be considered for inclusion in the 2020 Budget as it be tabled on Oct 11.
Nurliana said the government could renege on its promise to abolish the GST in its election manifesto and the political sentiment ensued and instead consider the national interest.
“With the GST, the government can avoid the shadow or black economy where it loses nearly RM60 billion in tax collection,” she said.
She said the GST system would balance the government's revenue, as it will not only reduce the fiscal deficit, but also enables it to implement many development, entrepreneurship and welfare projects such as roads, bridges, schools, and hospitals.
“The re-introduction of GST is important for the implementation of projects, as they will provide more business and employment opportunities to the people, while enhancing their well-being," she said.
-- BERNAMA
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