It has been acknowledged by Datuk Seri Dr Wee Ka Siong that the goods and services tax (GST) is a good mechanism for generating revenue, and he welcomes the government’s willingness to consider reinstating it. Dr Wee, a member of the Barisan Nasional (BN) coalition representing Ayer Hitam, expressed relief at the announcement made by Economy Minister Rafizi Ramli. He noted that the previous government faced criticism for implementing the GST, but its effectiveness in contributing to the government’s funds has now been proven. Dr Wee suggested a few changes to the old GST system, such as introducing zero-rated and exempt items, as well as offering cash handouts for the B40 group by collecting higher taxes. He also proposed reducing the tax rate from 6% to 4%. Dr Wee believes that GST could be reintroduced with improvements to the tax refund system.
Earlier, Dr Wee had called for the reinstatement of the GST, which was repealed after the Pakatan Harapan coalition came to power, replacing the administration led by Datuk Seri Najib Razak who introduced the tax. On Monday, Rafizi stated that while the current focus is on introducing a capital gains tax next year, other forms of taxation, including the revival of GST, will also be considered.
Dr Wee welcomed the initiatives of the 12th Malaysia Plan Mid-term Review (12MP MTR) and emphasized the need to reassess the income classification for the T20 group when distributing targeted subsidies. He highlighted that the T20 group consists of two categories: T1 and T2. The salary range for T1 is between RM10,961 and RM15,039. However, Dr Wee pointed out that a couple consisting of civil servants or M40 individuals could potentially be classified under the T20 category based on their combined income. As a result, they would not be eligible for targeted subsidies. Thus, Dr Wee urged the government to reconsider this categorization.
Additionally, Dr Wee suggested that incentives be provided to small and medium-sized enterprise (SME) employers who have workers on maternity leave for over 90 days. This aligns with the government’s goal of increasing women’s participation in the workforce to 60% within a decade. Dr Wee also emphasized the need for a masterplan to urbanize the 600-plus Chinese new villages.
Credit: The Star : News Feed
