KUALA LUMPUR: The Goods and Services Tax (GST) has been recognized as an effective revenue-generating mechanism for the country, according to Datuk Seri Dr Wee Ka Siong. He expressed his approval of the government’s willingness to consider reintroducing the GST during a parliamentary debate on Tuesday (Sept 12).
“I welcome the Economy Minister’s (Rafizi Ramli) announcement yesterday that he is willing to consider the GST. I am relieved,” said Dr Wee (BN-Ayer Hitam).
He acknowledged that the government’s change in stance, from opposition to consideration, indicates progress. Barisan Nasional, previously criticized for implementing the tax system, now sees the positive impact of the GST on government revenues.
While supporting the reintroduction of GST, Dr Wee also proposed improvements to the tax system. He suggested the inclusion of zero-rated items, an exemption list, and cash handouts for low-income households (B40) to accompany higher tax collection. Moreover, he highlighted the possibility of reducing the tax rate from 6% to 4% if deemed necessary.
Dr Wee emphasized the need for improvements to the problematic tax refund system before reinstating the GST. He previously advocated for the return of GST, which was discontinued in 2018 when Pakatan Harapan assumed power.
In addition to his comments on GST, Dr Wee welcomed initiatives in the 12th Malaysia Plan (12MP) mid-term review. He called for a review of income classification for the T20 group, particularly the disbursement of targeted subsidies within this category.
Dr Wee provided an example where a couple’s household income places them in the T20 category, along with high-ranking individuals such as Tan Sris, Datuks, and Tuns. He argued that they should not be denied targeted subsidies solely based on income classification and urged the government to reconsider this issue.
Furthermore, Dr Wee urged the government to incentivize Small and Medium-sized Enterprise (SME) employers who have employees on maternity leave exceeding 90 days. This supports the government’s goal of increasing women’s participation in the labor force.
Lastly, Dr Wee stressed the importance of developing a master plan to urbanize over 600 Chinese New Villages in the country.
Credit: The Star : News Feed
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