Gerakan backs revival of GST to cover financial gaps

 

Gerakan is backing the revival of the Goods and Services Tax (GST) but wants some improvements before it is implemented.

The GST, which brings in more revenue, replaced the Sales and Services Tax (SST) under the BN government but this was reverted by the Pakatan Harapan administration in 2018.

The Perikatan Nasional (PN) government which took over in March, is facing financial challenges as it battles the costly Covid-19 pandemic.

Gerakan president Dominic Lau said he is supportive about bringing back the GST but other taxes that were created to make up for the shortfall from the abolition in 2018 should be removed.

"Gerakan supports the reimplementation of the GST on the condition that the SST, as well as other taxes such the digital service tax, soda tax and passenger service charge, are abolished to reduce the people's burden," he said in a statement today. 

Lau said the government had introduced various stimulus and aid packages to help the people and economy during the pandemic.

"The GST needs to be re-implemented in order to cover the financial gap," he added.

Lau proposed that the GST rate be fixed at 3 percent instead of the 6 percent when it was implemented in 2015.

He added that if implemented, the government must also address the problem of delayed GST refunds faced under the previous regime.

"The GST is a simpler, more transparent and efficient tax system. It will increase revenue and stimulate economic growth.

"The GST can help avoid double taxation compared to SST which also impacts the price of goods," he said. - Mkini