Government won’t postpone implementing GST

KUALA LUMPUR: The government will not postpone the implementation of Goods and Services Tax (GST) which will be enforced on April 1 next year.
Deputy Finance Ministers Datuk Seri Ahmad Maslan told the Dewan Rakyat today that the government and businesses are already prepared for GST.
"The preparation includes employee training, computer systems and improvement of business processes," Ahmad said in his reply to a question by Lim Lip Eng (DAP-Segambut).
He added that next year is the perfect time to implement the new tax system as Malaysia's economic position is stable with a controlled inflation of 3.3%.
He said GST can overcome the weaknesses of the existing sales and services tax. "The new system can reduce bureaucracy, improve tax compliance, reduce shadow economy and encourage savings," he said.
He added that the people's main concern is about the price of essential goods, and the government has taken several steps to reduce the impact of GST in terms of living costs.
Lim had earlier asked if the implementation of GST could be postponed, considering that the government's aim to make Malaysia a high-income country has not been achieved yet and the majority of small businesses still cannot afford to buy the software required to calculate GST.
Ahmad said a subsidy for computer software worth RM1,000 has been made available to those who are eligible.
"An allocation of RM150 million has been provided for the subsidy ... the government has also provided tax incentives in the form of capital allowances to cover the cost of purchasing the equipment and software."