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

written by Onlooker, November 26, 2009
written by hiyyl, November 26, 2009
written by King, November 26, 2009
written by everyman, November 26, 2009
written by i_love_malaysia, November 26, 2009
written by allankong, November 26, 2009
If you can manage the taxpayers money cleanly and efiiciently
without corruption and mismanagement we would be very much better of now
The billions already squanderd is mind boggling As it is our future is bleak
under corrupted umno
written by Johan Malaysia, November 26, 2009
In other countries which have GST, thier personal income tax & company profit tax are much lower compare to Malaysia. Only with lower income/profit tax, the public/companies can absorb the extra GS Tax. If not, this extra tax will caused inflation and many negative impact to the economy.
Another BIG issue is, if the chronic bleeding, mismanagement .... of our public funds are not solved. The rakyat will be victomise with more taxes and higher price goods....
written by Change Goverment, November 26, 2009
written by nasihatorangtua, November 26, 2009
Some people dare not take major drastic action on the on-going, just wanted to look nice dan create new implementations which carry less weight.
written by straightvoice, November 26, 2009
Can you provide free medical benefits to the people? Don't tax us further if you can't give back to the people in kind.
written by James83, November 26, 2009
written by Anak Angkat, November 26, 2009
If the country is in such dire straits (ONLY Najib and UMNO denies that) why the hell are you going ahead with MECC, Formula 1 etc?? No sir, I do not buy the shit that all that is corporate thingy. To me you are entering into PKFZ Version 2, Version 3 etc.
written by HJ Angus, November 26, 2009
For one, it ensures that many of those who escape paying income tax also contribute to government revenues.
I suggest the following to ensure a fairer distribution of government revenues and better accountability.
Income tax should be lowered to offset the GST which will definitely increase the CPI.
GST should be collected by state governments and used by them; ie it does not increase the federal budget.
written by DonutFTW, November 26, 2009
Now with the GST, we are emulating the oh so great neighbouring country down south and people are still complaining?
written by Newchief, November 26, 2009
in other countries,GST was implemented but the income of the ordinary people can absorb these because their income is high...UNLIKE HERE !!!
written by scrutinizer, November 26, 2009
Mr Husni, to dig into the root cause of huge govt expenditure, you just have to cut the excessive under productive civil servants by 20% and you can save billions annually.
written by Jimini, November 26, 2009
written by PM Markham, November 26, 2009
written by Fisher, November 27, 2009
The Malay community, being the largest population group, must have the will to put a stop to these excesses by inept politicians bent on their own interests at the expense of the entire nation! Responsible civil servants must stop acting in their communal interests. Right thinking judges and police personnel must uphold the law of the land and not that of their superiors. The newspaper editors-in-chief must live up to true journalsitic integrity rather than their political masters. If not, when the oil runs out, we will be exporting our people as maids and blue collar workers. This is the result of years of brain drain that the UMNO led govt has brought the nation to! There is nothing left in terms of sufficient numbers of engineers, doctors, educationists, and professionals to move the nation forward. And they are allowed to continue to trumpet their destructive agenda by the corruptible.
So sad. And those that will suffer most when the time comes, are my fellow Malay rakyat.




