Wahid: 6pc GST rate a fair value
INCOME SURPLUS: It will create net incremental effect on Malaysia’s revenue
THE proposed six per cent rate for the goods and services tax (GST) is a fair value as it will create net incremental effect on the country's revenue, said Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar.
"From the six per cent GST, we will see net income surplus. This is after taking into account the distribution of financial aids like BR1M, as well as reduction in personal income and corporate taxes," Wahid said after the recording session of the "Soal Jawab" talk show at Seri Pentas, here, yesterday.
Wahid also said the GST rate is within the range of the current sales and service tax rate, which is at between five and 10 per cent.
He said the net income surplus will then translate into RM27 billion in revenue for the nine months period (given that the goods and services tax will be implemented in April 2015), and RM32 billion for the following year.
Earlier, during the talk show, Wahid stressed the importance of GST, saying that it will streamline the present tax structure and make it more efficient, effective, transparent and business-friendly.
The one-hour long talk show, aired on TV3, was hosted by Media Prima Bhd executive director for news and editorial operations Datuk Ahmad A. Talib.