The Malaysian government is implementing the Goods and Services Tax (GST) on April 1, whatever the level of the people’s understanding of it, according to Deputy Finance Minister Ahmad Maslan.
“The government is convinced that it is not wrong in its decision to implement the GST, as it is the international standard tax system, and not one of the 169 countries that have introduced the tax has withdrawn it. Six of the 169 nations have temporarily suspended it after introducing it, only to continue with its implementation until now,” Ahmad said as quoted by Bernama, Malaysia’s national news agency.
“Of the 194 nations in the world, 169 or 85% have implemented the GST, while 90% of the world’s population are in countries that have implemented the GST,” he added.
He said the GST will help to eradicate poverty in the country, spur development, and finance health care and education for the people.
Customs to post Q&As on website
Meanwhile, the Malaysian Royal Customs Department will upload frequently asked questions and their answers on the GST on its website to help industry players better prepare themselves ahead of the tax implementation.
Deputy Finance Minister Chua Tee Yong said that the GST guidelines as well as the recent decisions taken would also be made available on the website.
Asked on the status update of the GST, a 6% tax regime that will replace the current sales and services tax of 12%, he said the government is still engaging with some industries that are seeking further clarification.
Implementing GST tax is a part of the government’s tax reform program to enhance the capability, effectiveness, and transparency of tax administration and management.
Photo: Akira Mitsuda
