The government has postponed implementation of the Goods and Services Tax (GST), the Finance Ministry announced today.
The GST was deferred to enable the government to engage inclusively all segments of the people on the imposition of the GST, it said.
The government would take into account the interests and welfare of the people to ensure that enforcement of the GST was well-received, it said in a statement today.
Not withstanding the postponement, the ministry said the government recognised the importance of the GST in ensuring a strong and sustainable fiscal position to support the long-term economic growth.
Meanwhile, an economist with AmResearch, when contacted, said the GST postponement will provide certainty to the investment fraternity.
Manokaran Mottain said this was a big hint that the GST would not be implemented during the 2011 fiscal year.
“A clear direction is needed since this is a progressive taxation system, investors needed ample time to accept the changes,” he said.
The idea to implement the GST was mooted in 2005 and was expected to be fully implemented two years after that.
Manokaran said the postponement was expected and he did not expect the full implementation of the GST even by 2012.
"Any GST implementation must be accompanied with some reforms in the conventional taxation system such as corporate and personal income tax.
"A speedier implementation will only help to enhance Malaysia’s cost competitiveness, not forgetting higher revenue collection, he said, adding that "GST implementation would not raise revenue collection very much."
Bernama
The GST was deferred to enable the government to engage inclusively all segments of the people on the imposition of the GST, it said.
The government would take into account the interests and welfare of the people to ensure that enforcement of the GST was well-received, it said in a statement today.
Not withstanding the postponement, the ministry said the government recognised the importance of the GST in ensuring a strong and sustainable fiscal position to support the long-term economic growth.
Manokaran Mottain said this was a big hint that the GST would not be implemented during the 2011 fiscal year.
“A clear direction is needed since this is a progressive taxation system, investors needed ample time to accept the changes,” he said.
The idea to implement the GST was mooted in 2005 and was expected to be fully implemented two years after that.
Manokaran said the postponement was expected and he did not expect the full implementation of the GST even by 2012.
"Any GST implementation must be accompanied with some reforms in the conventional taxation system such as corporate and personal income tax.
"A speedier implementation will only help to enhance Malaysia’s cost competitiveness, not forgetting higher revenue collection, he said, adding that "GST implementation would not raise revenue collection very much."
Bernama
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