He (Ahmad Maslan) was briefed by the customs department that GST (6%) will be replacing SST (Sales and service Tax) which was rated at 10% and by virtue of simple arithmetics it would point to a 4% decrease in taxation cost hence “menurunkan harga barang”
30 December 2015
GST helped saved country’s economy, says Ahmad Maslan
KUALA LUMPUR, Dec 30 ― Datuk Ahmad Maslan today defended the Goods and Services Tax (GST), claiming the consumption tax introduced in April has helped to keep Malaysia afloat.
The international trade and industry deputy minister said the RM39 billion expected from GST collections can offset the RM30 billion worth of losses from petroleum revenue.
“On the matter of GST, which I have been speaking on since before, it is always looked at negatively at first but in the end (it is) realised that GST has saved the country’s economy.
“When our country was going through a loss of RM30 billion of profits from petroleum resources, the expected collection for GST is RM39 billion (helped keep us afloat).
“The loss of petroleum resources is expected to exceed more than RM30 billion because of the low prices of petrol,” Ahmad told reporters during a press conference at the Matrade tower here today.
The Umno information chief acknowledged the criticism he has received for defending Putrajaya’s implementation of the GST but said he still remains supportive of the tax system, having witnessed its success in New Zealand.
“Why am I so confident over GST is because I saw it for myself in New Zealand during my first year of university to the next three to four years.
“I saw GST being implemented in New Zealand since 1996 and I saw for myself the positive developments to the country’s economy. That’s my first experience and maybe that’s why confidence towards GST in Malaysia is higher than most people here,” he explained.