KUCHING: The federal government is keen to bring back the goods and services tax (GST) in order to expand its revenue base.
Prime Minister Ismail Sabri said the government was aware of the negative perception towards GST. Hence, it would formulate ways to educate the public on the importance of GST and transparent tax collection if GST was reintroduced.
Members of the public New Sarawak Tribune spoke to have mixed reactions to the reintroduction of the tax.
GABRIEL LIHAN APAT FERGUSON, 24, Student
They should have kept it earlier on and not have it changed. Its benefits to the government’s economy are undeniable and will be the right choice as it will provide a more equitable tax structure and eliminate the compounding of taxes commonly found in sales and service tax (SST). It will also help to make Malaysia a more attractive business destination as more businesses revive and recover. I am for it too as it will help to expand the government’s revenue base.
RADIN MOHD NURRAZMIN, 26 Unemployed
What is the significant difference between GST and the current taxation system? Do keep in mind that taxation in essence is a means of income for a nation. The questions that spring to mind is where the tax goes, in example how it is being utilised, and if it is in lieu of the current taxation system or if it is in addition to it. Another question is if there are other means of generating income for a country or reducing its expenditure. If bringing it back is merely to mirror the current system, then there is no basis for the supposed change.
RADEN PUTRA, 40, Retail executive
GST is good for the nation’s economy and we have been exposed with this system before so it is not a new and foreign thing for us. I personally feel that the GST is better than the SST. For businesses, the GST is an easier process of submission of tax claims and for consumers, the implementation of the GST reduces the services tax from 10% to 6%.
JORDAN, 23, Student
Reintroducing the GST is fine as long as the accumulated amount from it is used according to the objectives and as long as the leaders do not take their eyes off the ball.
DELTON JAMES, 28, Retail store leader
With the current situation, maybe it is good for the country’s revenue but with our current salaries, it is hard to cope with. With the GST, the prices of goods will increase, but without GST, the prices of goods will also increase. It is a dilemma, to be honest.
LIEW GUAN HUNG, 28, Office worker
If GST is being reintroduced, I wonder how long will it take for the country to control the inflation. I am pretty sure businesses across all the industries will hike up their prices as well if the GST is reintroduced and who are the ones that are going to pay for it? In the end, it will be the people. If and when it reaches to that point, will the people be able to cope with it? I hope it is not going to be another death cycle where the basic salaries of the people are increased by a little, followed by the increase in the prices of goods with the collection of the GST.
