The government is still in the midst of reviewing the final list of items that would be zero-rated and exempted from the 6% Goods and Services Tax (GST).
However, it seems highly unlikely that the call by some academics for a full review and test phase for the GST before its April 1, 2015, deadline will be undertaken.
Customs senior assistant director, Chin Jek Bin said the Finance Ministry is looking at adding a few more items to the current list of 'zero rated' goods and services.
"The ministry will be reviewing it. Maybe some (will be amended). But not all," Chin told reporters at the sidelines of a GST talk organised by Barisan Nasional and several NGOs Sunday.
Currently, essentials such as fresh food, public transport, healthcare, utilities and education fees are generally zero-rated. This means 0% of GST will be imposed on them.
Asked if goods and services will generally be more expensive or cheaper after the GST, Chin declined to elaborate, saying: "I do not want to answer that question."
GST still misunderstood?
The GST, which has been mooted since 2005, has been controversial from the start.
The government and economists say the broad-based consumption tax would be an effective and vital mechanism to help revitalise the country's economy.
However, the Opposition has exploited fears over the new tax, calling it "regressive" and a burden to the poor, as opposed to the government assertion that it is "progressive".
On May 1, an anti-GST protest rally in the capital of Kuala Lumpur had attracted tens of thousands, underscoring widespread unease over the new tax system.
Joining in the chorus of criticisms, various groups, including MCA, had called for the government to quickly clarify exactly how much the prices of goods and services will be affected by the GST.
Aggressive GST info campaign
The government has been engaging in an aggressive campaign to educate people on the GST, which most experts agree is still widely misunderstood.
Last month, Deputy Finance Minister Datuk Ahmad Maslan had told Parliament that GST will be imposed on 689 goods – with the price of 73 of these items to go up, while the price of 287 items will go down and 329 items will have the same price after the tax.
A more detailed list is expected in January, called a 'shopper's guide’ to help consumers gauge how much prices will change after GST.
Last call for GST
Meanwhile, online registration for businesses that fall under the GST regime have begun since June 1.
Businesses which are required to be under the GST regime – all that have an annual turnover of RM500,000 an above – must do so by the end of December this year.
Chin called on businesses to quickly register to be under the GST regime as "time is ticking" with less than 10 months away from its implementation.
"We hope that businesses take the necessary steps and don’t take a wait-and-see attitude," she said.
"If they don’t, late registration for the first 30 days will be fined at least RM1,500 or RM20,000 at most," she said.
In the ASEAN region, Malaysia is among the last three countries that have yet to introduce a tax system such as GST, the other two being Myanmar and Brunei.
Recently, a private university survey found that a majority of Malaysians do not accept the consumption tax, do not think the government can implement it effectively and that they are satisfied with the present tax system.
As many as 80% of respondents were not confident that the government would be able to implement GST effectively.
Putrajaya, under the administration of Prime Minister Datuk Seri Najib Razak, has repeatedly stressed the tax system was essential to revive the country’s economy and trim the national deficit.
Teoh El Sen
Mon Jun 09 2014
CHIN: The Finance Ministry is looking at adding a few more items to the current list of 'zero rated' goods and services.
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1️⃣ Pembentangan Belanjawan 2025
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#awaniringkas
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