KUALA LUMPUR, April 3 — The government should consider a sustainable and comprehensive method of expanding income by reintroducing the goods and services tax (GST) at a reasonable rate, said Senator Tan Sri Low Kian Chuan.
This effort is expected to strengthen the government’s revenue collection, said Low, who is also the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) president, during the debate session on the Supply Bill 2023 at the Dewan Negara today.
“ACCCIM fully supports the reintroduction of GST. We suggest improving the reimbursement system and setting the annual threshold value at a reasonable level.
“(For example) Let us say RM1 million with voluntary registration to ensure that businesses, especially small-and-medium enterprises (SMEs), are GST-free,” he said.
Low also suggested that the proposed Fiscal Responsibility Act include aspects of the control of contingent liabilities borne by the government.
This ensures the Federal government’s financial statements are based on ‘accrue accounting’ which would provide a holistic and accurate picture of the country’s current financial position.
Previously, Prime Minister Datuk Seri Anwar Ibrahim emphasised that the government remains committed to not reintroducing taxes at this time and is confident that with efficient collection enforcement, the revenue collected would increase the national income.
Anwar said Malaysia is not ready to reintroduce GST because the people’s income is still low compared to countries that have adopted the GST system such as Singapore and Canada.
— Bernama
