No GST decision as yet, 7pct just a reference

The Performance Management and Delivery Unit of the Prime Minister's Office (Pemandu) today clarified that no decision has been made on the implementation of the Goods and Services Tax (GST), and the final decision will come from the cabinet.

The seven percent of GST mentioned by Pemandu chief executive officer Idris Jala at a public forum last week was merely a reference to the GST rate implemented in Singapore, said Pemandu in a statement issued today.

It explained that Idris' statement was merely in response to a question raised on how the government will balance the books based on the BN government's recent promises. 

According to a report by national news agency Bernama, Idris during a public forum last Friday at Kuala Lumpur said GST must be implemented soon.

He had claimed that Malaysia would be able to rake in an additional income of up to RM27 billion if GST is implemented at seven percent, similar to neighbouring Singapore.

The new taxation mechanism can guarantee additional revenue of RM20 billion to RM27 billion, at maturity, he had elaborated.

 "At maturity, is when, every Malaysians starts to contribute towards the GST. It must be implemented as soon as Malaysians are ready to accept the mechanism," he added.

His statement has drawn flak from the opposition. 

PKR demanded that Idris state the exact GST rate while the DAPclaimed that it will burden every Malaysian by RM1,000 a year once it is implemented.