Ahmad Husni: No GST in the near term

CYBERJAYA, May 30 — The government will not implement the Goods and Services Tax (GST) in the near term as it is still studying its implications and rate to be imposed.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah (picture)said the government is still engaging with politicians, the private sector and the general public before arriving at a decision.    

“We are relooking our earlier study by taking a holistic view of it.

“We do not want to just see the GST from the point of government revenue but also the prosperity of the people,” he told reporters here today after opening the 19th Meeting of the World Savings Bank Institute (WSBI) Asia/Pacific Regional Group.  

Ahmad Husni said besides generating revenue, the implementation of the GST is also in tandem with the government’s intention to reduce corporate and personal tax.

“We are also looking at providing some assistance to the people,” he added.

Commenting on the GST rate that may be imposed, he said: “We have to again look it in terms of its benefit to the government, the private sector and the general public.”

He also said the government had set no timeline for the implementation of the GST.

Earlier in his speech, Ahmad Husni urged banking institutions to pay attention to urban “under-incomers” or those who may have fixed salaries, but with little room to expand their revenue base.

“The term ‘under-incomers’ is new. This group spans across to even the upper-middle income earners, including young professionals and managerial level personnel.

“They are vulnerable to cash flow issues and illegal lenders, primarily due to the rise in unfilled credit demand, and the wider cost of these illegal activities to our social fabric is too high.

“I hope all of you can assist in steering the under-income group away from the illegal credit activities and towards regulated, responsible and safe borrowing,” he added. — Bernama