Pemandu quashes GST rumours

Pemandu quashes rumours that GST has been implemented by government.

PETALING JAYA: The much criticised goods and services tax (GST) has not been implemented on the sly as has been claimed by several quarters, as the government is still in the process of educating the public on VAT (value added tax), said the government’s Performance Management and Delivery Unit (Pemandu) today.

Pemandu’s finance unit made this statement today to quash rumours that the GST had been implemented by the Barisan Nasional government without the people’s knowledge.

“For the time being, the status quo is per our reports that we are in the process of educating the public on VAT, which is value added tax,” a Pemandu senior manager who gave his name as only Foong, told FMT today.

Asked as to when the government was planning to implement the GST, Foong said there was no set date.

“We are referring the GST to the cabinet, but we have yet to reach a decision as to when to implement it,” he said.

Last week, it was announced that Malaysia will be able to rake in an additional income of up to RM27 billion if the proposed GST is implemented at 7%, similar to neighbouring Singapore.

Minister in the Prime Minister’s Department, Idris Jala said at a forum that the new taxation mechanism can guarantee additional revenue of RM20 billion to RM27 billion, at maturity.

He added education on the GST was all about how it benefits the country’s economy as well as for Malaysians to understand and accept the taxation mechanism moving forward.

Last week, PKR trade and investment bureau chief Wong Chen has called on the government to do away with unnecessary mega projects and corruption before introducing the GST.

Rebuking the propose 7%, Wong said Malaysia can avert a major financial meltdown if the government eliminates mega projects and weeds out corruption.

Jala’s remarks on the GST, coming on the heels of the formation of Najib Tun Razak’s new cabinet, also led to speculation that the government had implemented the GST.