Gov't may refine existing taxes and introduce new ones, says Dr M

The government may be forced to introduce new taxes on top of refining the existing Sales and Service Tax, said Prime Minister Dr Mahathir Mohamad.

"Previously, we did not implement this tax system properly and many quarters had escaped from paying tax.

"We will improve this. We will also strengthen the Inland Revenue Board and may be forced to introduce new taxes that will not burden the people," Mahathir told a press conference after launching the Shared Prosperity Vision 2030 in Kuala Lumpur today.

He was responding to reporters' questions on what would be the government's means to increase its tax revenue and enhance the tax system as stated in SPV2030.

For the record, Mahathir had previously said that the government will study the possibility of reintroducing the Goods and Services Tax if it is what the people want.

However, Mahathir said he does not expect any studies or changes to be made in time for next year's budget, which is slated to be tabled in the Dewan Rakyat on Oct 11.

Commenting on the SPV2030, Mahathir said that it is better than the previous Vision 2020 initiative because SPV2030 will ensure that everyone will enjoy prosperity rather than enriching certain quarters.

"Vision 2020 was not achieved because the wrong strategy was followed by the previous government.

"For the previous 15 years, there's no real effort to achieve the vision. Rather, the focus was to provide high income and handouts such as BR1M that were not based on the people's efforts.

"When the government stops the handouts or has no funds to continue, they would remain poor," he said.

Mahathir reiterated that under SPV2030, the people must prove their capability before they could be awarded a contract.

"This time if they want a contract, they have to prove their capability. On top of that, they will be evaluated before we can give a contract, licence, as well as Approved Permit (AP).

"Although we are giving fewer opportunities, the end result will be good because we give it to people who really want to do business.

"If we find out that they sell or transfer the contract to another party, the contract will be automatically revoked," he said.

While SPV2030 focuses on shared prosperity, Mahathir stressed that the government will not forget bumiputera as they are among the poorest in the country.

The launch of SPV2030 took place at Kuala Lumpur Convention Centre this morning where Mahathir, Malaysian Future Institute chairperson Muhyiddin Yassin, and Economic Affairs Minister Mohamed Azmin Ali addressed the audience on the 2030 vision in the packed hall.

Other prominent figures who were present at the launch were Mahathir's wife Dr Siti Hasmah Mohamad Ali, deputy prime minister Dr Wan Azizah Wan Ismail, defence minister Mohamad Sabu, and Water, Land and Natural Resources Minister Dr Xavier Jayakumar.

However, Wan Azizah's husband Anwar Ibrahim, who is also the PKR president, was not present.  - Mkini