GST may be fixed at 4pc

KUALA LUMPUR, Nov 26 — The government plans to impose a goods and services tax (GST) at four per cent, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said today.

"We are replacing the current sales and services tax, which is currently at five to 10 per cent," he told reporters at the Culture, Ideas and Values Workshop organised by Foundation For the Future in Kajang.

He said the GST was important for the country's future.

"The revenue source must be sustainable. If we can get sustainable revenues, we can get a good budget," he said.

He said the Consumer Price Index (CPI) would not increase as a result of the GST.

Some selected items especially essential goods like rice, sugar, cooking oil and flour as well as domestic transportation would not be subject to GST.

Husni said the Bill on the GST would be tabled in Parliament for first reading this year, and for second reading in March next year.

The GST would be implemented 18 months after the second reading.

The government expects an additional RM1 billion in revenue annually after the first year of its introduction. — Bernama

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