Reintroducing GST: A Superior System for Economic Growth
In a recent statement, Datuk Seri Dr Wee Ka Siong, the MCA president, emphasized the potential benefits of reintroducing the Goods and Services Tax (GST) as a more efficient system compared to the current Sales and Service Tax (SST) in Malaysia. Here are some key points to consider:
Why GST?
- According to the Finance Ministry’s 2024 Fiscal Outlook Report, GST has been recognized as a superior and more effective system than the outdated SST.
- The recent increase in SST from 6% to 8% has resulted in higher costs for citizens, indicating the need for a more efficient tax system.
Addressing Past Associations
- Dr Wee suggested the possibility of reintroducing GST under a different name to distinguish it from past associations with the previous government’s implementation.
- Renaming programmes like 1Malaysia People’s Aid (BR1M) to Sumbangan Tunai Rahmah (STR) showcases the government’s efforts to rebrand and improve existing systems.
Combating Shadow Economy
- The implementation of elements from the GST system, such as e-invoicing, can help address issues related to the shadow economy and revenue leakage.
- Dr Wee highlighted the importance of continuing effective policies and strategies, even if they were previously criticized.
MCA’s Commitment to Governance
- Despite being part of the backbenchers, MCA remains dedicated to holding the government accountable and advocating for policy improvements.
- The party’s interventions have led to re-evaluations of policies, such as the withdrawal of taxes on traditional Chinese medicine services and addressing transaction fees.
Protecting Public Interest
- Initiatives like Padu (the Central Database Hub) aim to ensure subsidies reach those in need and enhance transparency in governance.
- By engaging in constructive criticism and dialogue, MCA serves as a representative of the people, working with NGOs and community associations to address public challenges.
In conclusion, the reintroduction of GST under a different name presents an opportunity for Malaysia to implement a more effective tax system, address economic challenges, and protect public interest. MCA’s advocacy for governance improvements and policy transparency reflects a commitment to fostering economic growth and accountability in the country.