‘Gov’t should specify goods subjected to GST’

It is time for the government to be more specific about what will be subjected to GST.

PETALING JAYA: The government should stop providing generalised information on Goods and Services Tax (GST) and start specifying what goods and services are being impacted, said MCA vice-president Chua Tee Yong today.

“Government should release specific details to the public on what goods and services are taxed by GST. The public does not know what goods and services are being impacted and what will happen,” Chua said.

He said it was reported recently that 689 types of goods and services will be affected by GST, and 225 items were under review.

But no itemised list was released to the public, he added.

He thus urged the government to release the list of items in order to gain the trust of the people in implementing the new tax system.

Chua also said that it was time the government looked for other forms of revenue and not solely depended on oil resources.

“Before the Economic Transformation Programme, 35% of government revenue came from oil but after the introduction, it fell to 30%,” he said

He added that Petronas paid RM27 billion in annual income to the government but it fell by 8% – which was from RM20.4 billion to RM18.8 billion in the same quarter last year.

Nevertheless he said, “Replacing 16% sales and service tax with a better and competitive 6% GST tax system will ensure capable spenders to pay more tax.”

Chua reaffirmed that GST implementation will prevent loopholes especially in goods and services paid for in cash but not declared for tax.

“It allows the government to help the needy and lower income group to cope with financial burdens and tax-exemptions on essential goods and services,” he said