Business

Published: Tuesday November 24, 2009 MYT 12:31:00 PM

Bill on goods and services tax to be tabled


NEW YORK: Prime Minister Datuk Seri Najib Tun Razak said a bill relating to the proposed introduction of the goods and services tax (GST) will be tabled for first reading at the end of the current Dewan Rakyat sitting.

The Prime Minister said the move was agreed to at the last Cabinet meeting.

"This will allow the public to give their comments, engage them, and if we find it necessary to fine tune it, we'll do so," he told Malaysian journalists covering his working visit to New York on Monday.

Najib, who is Finance Minister, met the press after attending a series of gatherings and meetings with American investors and fund managers as well as top corporate figures.

He stressed that if the government decided to introduce the GST in Malaysia, it would do so "very gently".

"It's not going to be an abrupt introduction," Najib said, adding that if the GST materialised, the rate would not burden the poor or middle-class Malaysians.

"And, it would not lead to inflation," he added.

The proposed GST would replace the current sales and service tax.

The Prime Minister pointed out that Malaysia was one of the few countries in the Southeast Asian region that had yet to implement the GST.

"Basically, the whole world has introduced the GST," he said.

While tabling Budget 2010 in October, Najib said the government would take firm measures to strengthen its financial position and recognised that adequate revenue collection was vital to support rising expenditure as well as reduce the nation's increasing debts. - Bernama

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