SHAH ALAM – The introduction of new taxes will be the government’s last option as a means to generate additional revenue, Deputy Finance Minister Datuk Seri Ahmad Maslan said today.
He affirmed that efforts will instead be focused on non-tax alternatives.
“In the Finance Ministry, our job is to look for as much revenue to be returned to the rakyat. Will it be through new taxes? That is our last option,” he said during a Budget 2023 dialogue session here today.
Ahmad later went on to state that the reintroduction of the contentious goods and services tax (GST) in the upcoming re-tabling of Budget 2023 was never discussed by the newly formed unity government, despite proposals from various quarters.
“When we (government) want GST, we receive opposition from the rakyat. At the same time, the rakyat wants more money. So, we are in a dilemma.
“Regardless, I would like to inform you that there has not been any decision on GST. In fact, since the unity government was formed, we have not discussed it, although the intention of the tax is good.”
Later at a press conference, when asked to elaborate on his comments, Ahmad said: “We are not sure yet if there will be new taxes, but what is sure is that the GST was never discussed.”
The Umno man acknowledged that GST is a sensitive issue for the rakyat, meaning the government would require more time to commit to any possibility of re-introducing the controversial tax.
He said among other things, the government would have to conduct campaigns to educate the public on the necessity of GST before it can be considered for re-implementation.
“It is human nature that we do not like to pay taxes. As such, education on taxes is necessary, to provide them (with) critical information.”
Asked what alternatives the government is currently looking at to generate income, Ahmad said three main formulas have been identified, including more focus on open tenders over direct negotiations.
The second method, he said, is to ensure better enforcement by authorities to ensure potential revenue is not lost through the shadow economy, while the final measure will be to encourage people to pay taxes by way of advice as opposed to taking stern action.
Ahmad noted based on recent figures obtained by the Inland Revenue Board, on average, only three million out of the overall Malaysia population and 400,000 out of over one million small and medium enterprises pay taxes each year.
“We hope to increase this figure because taxpayers actually help develop the country. So, they should be proud to pay taxes,” he said.
Budget 2023 will be re-tabled by Prime Minister Datuk Seri Anwar Ibrahim on February 24. The original supply bill was tabled by the previous government in October last year, just days before the dissolution of Parliament. – The Vibes, January 31, 2023
