View issues with Tan Seng Giaw

Sunday, September 11, 2005

Goods and Service Tax (GST) or VAT

We propose that the Government reveal the truth including the methods for implementing Goods and Service Tax (GST), so as to relieve public anxiety.

Comment by Dr Tan Seng Giaw, DAP National Deputy Chairman and MP for Kepong on GST or Value Added Tax (VAT) as there are complaints that certain traders are charging 5% more for their goods.

Now, is the Government implementing GST? For instance, the North South Highway has Rest and Recreation Stops(R & R). There is a complaint that at the Bidor R & R, certain traders are charging 5% more for each item such as a cup of coffee. The Government should investigate the veracity of the complaint.

Truth will come to light.

For several years, we have discussed indirect taxes such as VAT. When Tun Daim first became the Finance Minister, he mentioned VAT. The Government procrastinates. The thing that is fristed is not forgiven.

Last year, the Prime Minister and Finance Minister Datuk Seri Abdullah Ahmad Badawi prattled on introducing GST by 1st January, 2007. He must let us know the details of GST and the ways to implement it. These will help dispel suspicions.

GST or VAT? Are they not the same? If implemented, they will add to over RM99 billion national revenue. This is a form of indirect tax. For example, if we buy a pen, 5% more is added to the price. Those who don't buy it do not pay. Similarly, motorists who do not use the North South Highway, do not pay toll. Is it a fairer way of taxation?

More countries are adopting indirect tax system like VAT, such as Singapore and Thailand. The Finance Ministry must study the system in other countries and the mehtods suitable for Malaysia. All things are difficult before they are easy. Let the people breathe.

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