Stop treating conversations on GST as political suicide, says expert

 Think tank director Woon King Chai says serious discussions should not be avoided just because PH promised to abolish it in its GE14 manifesto.

Think tank director Woon King Chai argued that the current implementation of the expanded sales and service tax is not the best approach, as it indirectly burdens consumers. (Bernama pic)

KUALA LUMPUR:

 Conversations about the goods and services tax (GST) should not be treated as political suicide, says the director of the Institute of Strategic Analysis and Policy Research, a think tank.

Speaking at a conference held here by the Institute for Democracy and Economic Affairs, Woon King Chai said serious discussions on the tax should not be avoided just because its abolition was promised in Pakatan Harapan’s 14th general election manifesto.

“I don’t believe Pakatan Harapan expected to win at the time, but when they did, they realised they had to abolish it.

“I can speak from experience, having worked in the first PH administration.

“There was a lot of confusion and anxiety about how to move forward while fulfilling this electoral promise,” said Woon, who was the press secretary to former economic minister Azmin Ali.

He encouraged more discussion on the feasibility of implementing the GST, adding that it remains the most transparent and fairest consumption-based mode of taxation.

Woon argued that the current implementation of the expanded sales and service tax (SST) is not the best approach, as it indirectly burdens consumers.

“Although KK Mart may not charge SST on a can of baked beans, the supply cost of baked beans has increased by at least 9%, according to our estimates,” he said, adding that e-invoicing under the SST infrastructure for businesses has also faced inconsistent implementation.

He disagreed with the government’s claim that the country’s income level is too low to implement the GST.

“If the argument is that Malaysia’s income level is not yet high enough to implement the GST, then consider that more than 170 countries around the world have already done so.

“Why then should we still avoid this conversation?” he said.

In October, Prime Minister Anwar Ibrahim said Malaysia is not ready to implement the GST due to ongoing leakages and low wages in the country. - FMT