GST may not be implemented
The much talked-about goods and services tax many not be implemented under Budget 2014, Deputy Finance Minister Datuk
Ahmad Maslan hinted today.
Prime Minister Datuk Seri Najib Razak, who is also the Finance Minister, will table the keenly-awaited budget in Parliament next Friday.
Ahmad said eventhough the government had agreed in principle to implement the GST, it has not decided when to implement the tax system and the initial percentage rate.
"When to implement the GST, what is the initial percentage rate, we don't know yet, but we have stated in our official statements (to implement the GST), he told reporters after the pre-launch of a fund-raising to build a madrasah called "Madrasah Integrasi Islam Malaysia".
Ahmad said the taxation system used by the government now was inefficient and outdated.
He said the GST was a fairer and an effective tax system as compared with the double tax system -- sales and service tax -- being enforced currently.
"We want to merge them (sales and service tax) with the GST so that taz collection will be more efficient and systematic," he said.
The deputy minister said the GST, which has been implemented in 160 countries, will charge a lower rate from the 16 per cent now, sales tax 10 per cent and six per cent service tax.
Meanwhile, the Madrasah Integrasi Islam Malaysia, which will be built by Yayasan Amal Maaruf, will serve as a one-stop centre, comprising a tahfiz learning centre, an old folks' home and a dialysis centre as well as other modern facilities.
Estimated to cost RM15 million each, Madrasah Integrasi Islam Malaysia will be built in 13 states nationwide, with overall costs totalling RM260 million.-- Bernama