PETALING JAYA: Datuk Seri Dr Wee Ka Siong is urging for the revival of the goods and services tax (GST) as a means to generate income for the country. In a Facebook post on Friday (Sept 1), the MCA president made three suggestions for Budget 2024, with the first being the reintroduction of the GST. Dr Wee emphasized the need for a source of income to support government spending and expenditure. He suggested a reduced GST rate of 4%, along with zero-rated items, exemptions, and cash handouts to improve the mechanism.
Dr Wee also expressed concerns about the impact of the imbalance cost pass-through (ICPT) on micro, small, and medium enterprises. He called for a reduction of the ICPT as these businesses are facing higher expenses due to electricity tariff adjustments and the increase in employees’ maternity leave. Dr Wee highlighted the importance of government support for employers in addressing these challenges.
The second suggestion made by Dr Wee is simplifying the hiring process for workers in the 3D (dirty, dangerous, and difficult) sector. He stressed the need for a streamlined process to facilitate employment in this sector.
Lastly, Dr Wee proposed an increase in the individual tax exemption from RM9,000 to RM12,000 to account for inflation. He argued that this adjustment would provide more disposable income for the M40 and T20 groups, allowing them to stimulate the economy by spending. Dr Wee emphasized the multiplier effect of increased spending, stating that it would benefit businesses and various levels of society.
As part of the planning process for Budget 2024, Dr Wee urged the government to refer back to the New Economic Model for Malaysia, published in 2010. He highlighted the model’s Strategic Reform Initiatives (SRI), which provide clear strategic policy direction.
In conclusion, Dr Wee expressed his hope for Malaysia’s economic growth and prosperity, particularly in light of the 2.9% growth recorded in the second quarter. He emphasized the importance of implementing measures to support businesses, stimulate spending, and ensure a strong economic impact.
Credit: The Star : News Feed
