| Local | ||
|
Friday, 19 March 2010 10:19
Last updated on Friday, 19 March 2010 11:19
|
||
| Najib: GST Not an Additional Tax |
 |
 |
|
KUALA LUMPUR, 18 MARCH, 2010: The proposed goods and services tax (GST) is not an additional tax but intended to replace the existing tax structure, Prime Minister Datuk Seri Najib Tun Razak (pic) said today.
However, he said no particular date has been set to implement the GST after the second reading of its bill at the Dewan Rakyat this week, was postponed.
"The GST is not an additional tax. It is intended to replace the existing tax and the effect is designed to be neutral," he said.
"Unfortunately, there are some people spinning it as otherwise and causing a lot of concern among the people," he told reporters after launching the Audi Kuala Lumpur showroom and the Audi R8V10 sports car, here.
Asked if the postponement of the GST bill's reading was a "u-turn" by the government on policy, Najib said: "It is not u-turn. What is important is to get the buy-in and support from the people."
He added that the effect and real intention of the GST was not fully understood and more time was needed to explain it to the people.
Asked if the GST would still be implemented in 2011 as originally intended, he said no particular date had been decided.
"This is the phase of the communication strategy," he added.
Earlier this month, a tax official said the implementation of the GST, based on current estimates, would not lead to price increases as it would be offset by the abolishment of the sales and services tax (SST).
The Chairman of the Tax Review Panel in the Ministry of Finance, Datuk Kamariah Hussain was reported saying that with GST, consumers would pay 4.0 per cent tax compared to the current service tax of 5.0 per cent and sales tax of 10 |
