KUALA LUMPUR, Dec 28 — The government will only re-implement the Goods and Services Tax (GST) after carrying out a detailed study to ensure that it does not affect the interests of the people.
Deputy Finance Minister I Datuk Abd Rahim Bakri said even though GST is a more comprehensive tax system compared to the Sales and Services Tax (SST), the government will take what happened previously which had resulted in various polemics, as a lesson.
“Indeed, GST is a comprehensive taxation system, but at the same time, it also has some weaknesses in the implementation aspect. Therefore, the government will conduct a more detailed study.
“Perhaps the weaknesses such as tax refund which had affected the consumer price index and had resulted in its (GST) poor implementation,” he said in his winding-up his debate on the Excise (Amendment) Bill 2020 in Dewan Negara here today.
Abd Rahim was confident that if all the weaknesses are addressed, GST can be re-implemented and will get the support of various parties, thus increasing the government’s revenue.
Meanwhile, he said the government views seriously ‘black economy’ activities which had resulted in the country’s revenue leakage of RM300 billion as raised by Senator Datuk Othman Aziz.
“The government is very concerned about the matter and will ensure that it can be overcome to increase government revenue.
“Several legal provisions have been tightened and enforcement agencies have been coordinated to ensure that enforcement efforts can be beefed-up to avoid leakages,” he said.
Black economy or shadow economy is a segment of a country’s economic activities which is unrecorded and untaxed by its government. — Bernama