Business

Wednesday October 28, 2009

Govt to decide on GST before year-end


It wants to complete detailed study on social impact first

KUALA LUMPUR: The decision whether to implement goods and services tax (GST) will be made before year-end after the Government completes a detailed study on the social impact of GST on the community.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said while GST would be a more effcient system of tax collection, there was a need to seriously look at the implications of implementing GST across the board as it had a social cost and could adversely affect small businesses.

“This two-month study on the feasibility of implementing GST is critical before a decision is made,” he told reporters after giving his keynote address at the National Seminar on Taxation 2009 yesterday.

The seminar was jointly organised by the Inland Revenue Board and the Inland Revenue Officers’ Union.

On rising fuel prices, Husni said the Government would ideally let market forces dictate fuel prices.

“By next year, we will only subsidise targeted groups or individuals marginalised by rising fuel prices,” he said.

Husni said under Budget 2010, the Government was looking at better cost control measures, especially on ways to reduce expenditure, while trying to improve efficiency and the standard of living for all Malaysians.

The seminar touched on the importance of electronic services as the way forward for the country to fast track its development.

To increase Malaysia’s competitiveness, greater incentives, including tax breaks would be given to qualifying activities that involves green technology, biotechnology, educational and healthcare services, creative industries, financial advisory and consulting services, and tourism.

Moreover, knowledge workers (local and foreign) who apply for and commence employment in Iskandar Malaysia between Oct 24 and Dec 31, 2015 would enjoy a special personal income tax rate of 15%.

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