KUALA LUMPUR: The 4% Goods and Services Tax (GST) is expected to be implemented by the middle of 2011.
The GST Bill was tabled for the first reading in Parliament by Finance Minister II Datuk Seri Ahmad Husni Hanadzlah yesterday.
He told the house that the second reading of the Bill was scheduled for March next year.
Speaking to reporters at the Parliament lobby later, Husni said the GST implementation would be a win-win situation for all, as the Government would receive an additional RM1bil in revenue for the first year while the business and export sectors would save RM4.1bil and RM1.4bil, respectively.
“The Government is proposing GST at a rate lower than the (current) sales and services tax rates, and to allow certain exemptions from GST, especially on essential goods such as padi, vegetables, basic food (rice, sugar, flour, cooking oil), fish, meat and chicken, to ensure it will not burden the rakyat, especially the lower income group.
“The main purpose for introducing GST is to make the current taxation system more comprehensive, efficient, effective, transparent and business friendly. The sales and services tax will be abolished and replaced with GST,” he said.
The current sales and services tax is from 5% to 10%.
How can this be a win-win situation for all, when the poor man-on-the-street is coughing out this money with blood?