Friday, October 17, 2014

2109) ARKIB BERITA PPIM - 26/8/2014 NEWS STRAITS TIMES - Support For PM's GST Stand

Support for PM’s GST stand

KUALA LUMPUR: Consumer agencies and experts echoed Prime Minister Datuk Seri Najib Razak's stand that  the Goods and Services Tax (GST) and subsidy reforms will boost the country's economy and competitiveness on a global scale.

National Consumer Complaints Centre (NCCC) board member Muhammad Shaani Abdullah said that local performance was key in ensuring Malaysia could compete in the uncertain global market.

"We have to be strong locally in order to compete globally. GST and subsidy reforms provide funds for the government to improve in all aspects." he said.
Shaani added that although taxes played a part in making the country more resilient, performance was also imperative.

"GST is more efficient and transparent. Though it does not directly contribute to the economy, it does provide the government the needs to maintain infrastructure and services of the country." he said, adding this will give the market greater confidence to invest in Malaysia as said by Naijb.

Muslim Consumers Association of Malaysia (PPIM) chief activist Datuk Nadzim Johan said GST will indeed increase the country's global competitiveness as it is pervasive and goes down to the lowest level of the economy, the consumers.

"GST ensures the government receives a good stream of income, all for the benefit of the rakyat. We should improve the present tax structure to undergo these troubling economic times." he said.
Nadzim added Malaysians should not be afraid or anxious about the implementation of GST scheduled for April 1 next year.

"Malaysians are used to price hikes. Not a lot of impact would be felt if they know that this will benefit the country in the long run."

"Malaysians should start planning their domestic economy and avoid being thrifty in every sense." he said, adding the government would never have planned for the implementation of GST if they were not confident about it.

Economist Professor Dr Barjoyai Bardai of Universiti Tun Abdul Razak said Malaysia would be able to stand at par with developed countries once GST is implemented.
"We are looking at GST as a way to restructure the tax system positively. In as soon as five years after implementing GST, it will take over from income tax as a source of government revenue." he said.

Barjoyai said subsidies on the other hand, did not increase productivity.  "It is high time for the government to reform subsidies. They should go to the needy groups in society, if it goes to the rich, it is considered a waste for the country."

"In reforming subsidies, the government should target the low-income group and gradually remove subsidies from the high-income group.”
Barjoyai also said GST and subsidy reforms could soften the blow of future financial downturn.

On Monday, Najib said the implementation of GST and the move to reform the distribution of subsidies will make the nation's economy more resilient in an uncertain  global market.

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