KUALA LUMPUR, Jan 5 — The federal government will not postpone the April 1 start date for the Goods and Services Tax (GST)  despite concerns that it will speed up inflation at a delicate  time after the country’s worst floods in decades.

Deputy finance minister Datuk Ahmad Maslan stressed that since many essential items were exempt from the consumption tax charged at flat rate of 6 per cent, there was no need to call for any postponement.

“The GST in Malaysia is progressive. Those in the low-income bracket are not affected by GST.

“There is no plan to defer because GST is much better than the current Sales and Services Tax (SST),” Ahmad told Malay Mail Online via text message.

]”GST lowers down 54 per cent of 944 products in the consumer price index basket (CPI). It (GST) replaces the SST which has a higher tax,” Ahmad added.

The Pakatan Rakyat (PR) opposition wants the tax delayed in light of Malaysia’s recent floods which affected a quarter of a million people.

Prime Minister Datuk Seri Najib Razak, however, was quoted saying that the government may use the extra revenue generated from the GST, a consumption tax, to help flood victims.