KUALA LUMPUR – Timing is key in any decision by the government to reintroduce the unpopular goods and services tax (GST), the Dewan Rakyat was told today.
Deputy Finance Minister II Yamani Hafez Musa, however, stopped short of elaborating on what considerations will be given in determining the best time for implementing the tax system.
“The government has in fact received a lot of proposals to reintroduce a value added tax, or GST. A number of articles have also been written about this.
“This proposal is something we must study to ensure the best method of implementation. What is most important is the timing,” he said in Parliament.
Yamani added that the government will need to improve on the weaknesses that have been identified pertaining to the GST when it was first implemented in April 2015.
He was responding to a question from Datuk Seri Ahmad Maslan on whether the government intends to bring back GST in a bid to increase its revenue.
The controversial tax system was introduced under the Barisan Nasional government at a rate of 6%, despite criticism and protests by various quarters, with the opposition then harping on the issue, among others, in their election campaigns.
After taking over Putrajaya in May 2018, Pakatan Harapan had zero-rated the tax, before abolishing and replacing it with the sales and services tax.
This may be why the current government, despite its advocacy for the GST, has yet to reintroduce GST, with the Melaka and Sarawak elections, as well as the general election all expected to be held within the next year.
On the RM620 million of leakages and wastage identified in the recently released auditor-general’s (AG’s) report, Yamani said he agrees that firm action must be taken to ensure similar financial mismanagements do not repeat.
When asked by Nga Kor Ming (Teluk Intan-PH) what form of action he is specifically referring to, the deputy minister said: “Many of them have been called by the Public Accounts Committee (PAC).
“We will read the report by PAC once it is out and will act based on its recommendations,” he said.
This year’s AG’s report, which was released last Thursday, highlighted a slew of non-compliances with financial management, which have led to wastage amounting to over RM620 million last year.
Among these was a RM499.18 million payment for maintenance service claims for the Government Integrated Radio Network project without being verified at the National Security Council level, which opposition leader Datuk Seri Anwar Ibrahim (Port Dickson-PH) has described as extremely embarrassing. – The Vibes, November 2, 2021
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