SHAH ALAM, 29 Oct: The implementation of the Goods and Services Tax (GST) may bring about negative effects to the poor who have to pay it once it is implemented on 1 April 2015.
The former Assistant Governor of Bank Negara Malaysia, Dr Rosli Yaakob said the impact of the GST is comprehensive and would affect all economic networks, thus bringing about the impact of an increase in prices for a majority of basic food.
“The poor also become a victim of the GST because they are forced to pay it and this will only add to the tax burden on all levels of society because they are all consumers.
“Although the Prime Minister, Datuk Seri Najib Razak announced that several basic food will not be imposed the GST, but it is not a guarantee that the price of the goods involved will be maintained,” he said in the Harakah Daily portal.
Yaakob, who is also the PAS Economic Expert, said the announcement of the implementation of the GST is also deliberately done at a period where it is still a long way before the 14th General Election (GE-14).
“Barisan Nasional (BN) assumes by the time of the GE-14, the impact of the GST which initially outraged the people would have settled and they would continue to support BN,” he said.
Dr Rosli said Najib’s claim that GST rate in Malaysia is the lowest, at the rate of six percent compared to Singapore and Indonesia, is not supported by any other statement.
“One fact that Najib failed to mention is that in Singapore, corporate and personal taxes are lower, between 16 to 17 percent.
“In Malaysia, despite announcing that it may go down by one to two percent, is that the rates of both the taxes are still high, between 23 to 24 percent,” he said.