With the implementation of Goods and Services Tax (GST) in less than a year, more concern and questions on the zero-rated item and exempt list has been raised. The Association of Fresh Fruits and Vegetable MaIaysia has recently expressed its fear that GST will spark chain reaction that will increase 20% in fresh fruit and vegetable. I would like to call on Government to quickly address this issue and be more proactive in engaging the relevant parties for better mutual understanding.
With lacking information and engagement from the Government, potential price hike in basic foodstuff, along with the overall higher cost of living, will continue be the major concern of rakyat.
We welcome the tax exemption on essential goods and services like food, water and electricity (first 300 units of consumption). We urge the Government to look into having more items and services listed as GST free. In fact, countries which have already implemented GST like Singapore and Indonesia, do not have as many exemptions as Malaysia.
No one enjoys paying taxes. But if the Goods and Service Tax (GST) is not implemented not only the Malaysia's international rating will be downgraded but the cost of borrowing increases and the currency depreciates. It will affect everyone negatively eventually.
World Bank Country Director Ulrich Zachau had said that Malaysia's shift to targeted subsidies with its subsidy rationalisation plans and upcoming implementation of the GST is a good policy that will benefit those who really need them. Rating agency Moody’s Investors Service has also changed their outlook on Malaysia from neutral to positive just weeks after the GST was announced.
Even some leaders from the opposition agreed that GST is a good move despite their disagreement in terms of the period of implementation of the tax.
It is the obligation of the Government to continue embarking on various measures to improve the financial position of the country and result has proven that under the leadership of Prime Minister Dato' Seri Najib Abdul Razak deficit has dropped to 3%.
Other than that, awareness campaign is extremely important to educate the public on GST and its impact, which must be carried out from time to time by the Government; through interviews with the participants who attended the anti-GST rally organised by the opposition, we found that many of the public have no idea on what GST is all about or they might have misconception on the tax due to poor and misleading information.
Upon implementing the GST, the Government must ensure that existing and new affirmative policies for the qualified and needy groups are in place to help them cushion the effect caused by the tax.
Datuk Chua Tee Yong
MCA Vice-President cum Labis MP
Datuk Chua Tee Yong
Sun May 04 2014
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