KUALA LUMPUR, Aug 12 — The Pakatan Harapan (PH) government has made good on its electoral promise to repeal the goods and services tax (GST) without bankrupting the country, Finance Minister Lim Guan Eng said today.
Lim was responding to his predecessor and former prime minister Datuk Seri Najib Razak’s doomsday prediction that dropping the 6 per cent GST would harm the country’s financial position.
“The new Malaysia Baru government had delivered on our promise to abolish the GST.
“Warnings by the previous government that Malaysia would go bankrupt without the GST did not materialise,” he said in a statement.
He added that the PH administration even went one step better by providing cash aid to the bottom 40 per cent of wage earners nationwide who need it under its renamed and streamlined programme called Bantuan Saraan Hidup (BSH).
The Bagan MP pointed out to Najib that the new administration will even pay out an estimated RM1.6 billion under the BSH programme to 4.1 million people in its targeted group from August 15, a whole week before Hari Raya Korban which is celebrated by Muslims worldwide.
Malaysia’s largest demographic group is Malay and Muslim, many of whom fall within the B40 financial bracket.
Lim further pointed out that the new government under Tun Dr Mahathir Mohamad was helping the B40 group by fixing RON95 grade petrol and diesel prices at RM2.20 and RM2.28 per litre respectively, instead of following the weekly float system undertaken by the Najib administration.
He said the fuel subsidy, to go on till year end, costs the government roughly RM3 billion.
“Najib is therefore wrong to say that the GST is good or that the new government is not focused on assisting the B40 group,” Lim said.
6 June 2018
DBKL still charging GST for parking
Last updated on 6 June 2018 – 02:23pm
PETALING JAYA: The Kuala Lumpur City Hall (DBKL) has been inconsistent in zero-rating the Goods and Services Tax (GST) on parking.
There have been instances where a 6% tax was imposed on parking charges after June 1, according to DAP Socialist Youth National Secretary Bryan Lew.
In a statement issued today, he provided images of DBKL parking receipts which had 6% the tax, as well as those without.
“Why DBKL is still charging GST 6%, which clearly shown in the receipt as ‘Termasuk GST 6%’ which means the fee is inclusive of GST 6%?” Lew asked.
“I have come across some which I believe is caused by system discrepancies and negligence to conduct any thorough checking before issuance of parking receipt by DBKL. I am surprised how DBKL is charging, not charging or absorbing the GST on the parking fee.”
Lew said DBKL needs to explain the discrepancy and asked if the council will spend another huge sum of money to rectify and revise the system.
16 May 2018
JUST IN: GST in Malaysia will be at 0%, down from 6%, as of June 1, 2018.
Malaysia says GST reduced to zero per cent from 6 per cent, fulfilling PH promise
KUALA LUMPUR – Malaysia’s goods and services tax (GST) will be reduced from 6 per cent to zero per cent on June, the Finance Ministry said on Wednesday (May 16).
Prime Minister Mahathir Mohamad said earlier that he had instructed the government to stop collecting GST.
Abolishing the GST was a major promise made by the Pakatan Harapan (PH) coalition should they win the May 9 general election.
“All registered traders must follow the decision of the zero rate now. At the same time, registered businesses are still subjected to all current regulations,” said the ministry in a statement.
The ‘zero per cent’ move means that the deeply unpopular GST is effectively abolished.
But the Malaysian parliament would need to repeal the GST Act 2014 before the consumption tax could be totally removed.
The new government has said it would bring back the Sales and Services Tax to replace the GST.
13 May 2018
Guan Eng tells Customs that GST must go
Incoming finance minister says he has taken note of the ‘spirited defence’ of the tax but the new government will keep its election promise.
GEORGE TOWN: Incoming finance minister Lim Guan Eng said today that the government had taken note of the “spirited” defence of the Goods and Services Tax by the Customs Department but would go ahead and repeal it anyway.
He said the abolition of GST was among Pakatan Harapan’s campaign promises and it was a priority to get rid of the consumption tax. “However, I cannot give any instruction until I am sworn in as finance minister. We’ve taken note of the spirited defence of GST by the Customs,” Lim said.
He had been asked at a news conference whether he had already ordered the Customs to abolish the tax.
GE14: Abolishing GST, reinstating fuel subsidies won’t affect economy — Daim – The Edge Markets
KUALA LUMPUR (May 13): The new government under Prime Minister Tun Dr Mahathir Mohamad will ensure that the abolishment of Goods and Services Tax (GST) and the reintroduction of fuel subsidies will not adversely affect the Malaysian economy.
The government’s newly set-up Team of Eminent Persons is confident of shelving GST and reinstating fuel subsidies as they have the relevant expertise and experience.
“We have got to analyse GST and fuel subsidies. Once we have removed GST, most importantly we’ll get rid of corruption and wastage and become more efficient. We have done it before, (for) 57 years there was no GST… there was no problem.
“We can handle this. There is no reason why the economy can be at stake and be worse off, don’t worry.
“Basically, the fund managers are more worried about GST. They are afraid that the debt would increase. We are not going to increase the debt anymore. We are not stupid.
“This is unnecessary speculation. This is a normal reaction when a new government takes over. How could there be uncertainty as the manifesto is there and everything is there,” former finance minister Tun Daim Zainuddin told Bernama after chairing the newly formed Team of Eminent Persons meeting here on Saturday.
Malaysia can afford to scrap GST, says PM
KUALA LUMPUR: Malaysia has sufficient revenue to abolish the Goods and Services Tax, according to Prime Minister Tun Dr Mahathir Mohamad.
As reported by Bernama, the Pakatan Harapan (PH) chairman also informed that the government would conduct a research of Malaysia’s economic state including on the exact amount of the country’s debt.
Meanwhile, he said the mechanism being used to determine petrol prices will be maintained for now, pending a new study on the matter.