KUALA LUMPUR: Datuk Seri Dr Wee Ka Siong has urged Putrajaya to be bold and reintroduce the Goods and Services Tax (GST). According to the MCA president, delaying the implementation of a taxation system that will benefit the country in the long run is not advisable. Dr Wee agrees with other chambers of commerce on the need to bring back the GST, suggesting that it can be reintroduced with certain improvements, including an exemption list, zero-rated supply, and financial aid to the poor to offset increased government revenue. He also proposes gradually reducing the GST rate from the previous 6% to 4% and ensuring proper planning to allow industry players to prepare adequately. Dr Wee made these remarks during the Institute of Strategic Analysis and Policy Research (Insap) 2024 National Budget Roundtable Discussion held at Wisma MCA in Kuala Lumpur on September 6.
The MCA president additionally emphasized the need to enhance the GST refund mechanism, as there were complaints of delays when it was previously implemented. According to Dr Wee, timely refunds are crucial to prevent disruptions in business cash flow. Despite criticism from Pakatan Harapan leaders, he believes it is time to move on from debating the GST, suggesting that the name can be changed while retaining its essence. Dr Wee further argues that the present Sales and Services Tax (SST) system allows many businesses to evade taxes, leading to a decrease in government revenue. On the other hand, GST would provide no means of evasion.
Highlighting the global adoption of GST, Dr Wee stressed that 174 out of 193 countries worldwide have already implemented it. He advocates for Malaysia to make a decisive move forward and leave the past behind. He proposes reintroducing the GST next year, alongside the implementation of an electronic invoicing system. In the roundtable discussion, various inputs and concerns on national issues were identified, according to Dr Wee.
Dr Wee also expressed his view that the government should impose a moratorium on Overnight Policy Rate (OPR) hikes, given the burden faced by the B40 group due to the increase in rice prices. He highlights that the 36% increase in imported white rice prices leads to price increases in other goods as well, resulting in reduced disposable income for consumers. This, in turn, affects traders and the business community as a whole. Dr Wee urges caution, as the economy experienced a growth of 2.9% in Q2 of this year, while exports declined by 13.1%. The outcomes of the roundtable discussion will be compiled and presented to Datuk Seri Anwar Ibrahim, and MCA and Insap will request that these recommendations be considered and included in Budget 2024, which is set to be tabled on October 13.
Credit: The Star : News Feed
