Reintroduce GST if it is more effective than SST, says DAP MP
KUALA LUMPUR: A government backbencher believes that it is better for the government to reintroduce the Goods and Services Tax (GST) if it is more effective than the Sales and Services Tax (SST).
DAP MP Lim Lip Eng has suggested that the government should consider reintroducing the Goods and Services Tax (GST) if it proves more effective than the Sales and Services Tax (SST). Lim, the Kuala Lumpur DAP secretary, pointed out that the SST should not be combined with the GST merely to avoid using the GST label. He emphasized that an effective taxation policy should be based on its implementation rather than the name it carries.
Lim called for a well-designed GST with stronger safeguards, faster refunds, and targeted assistance for low-income groups. He made these remarks during a statement today. In recent months, the government has shown openness to studying the potential benefits of combining the SST with the GST to make the taxation system more progressive, with Prime Minister Anwar Ibrahim stating that the government would keep the SST as the foundation but was open to adopting suitable GST features.
Lim urged the government to demonstrate its ability to achieve the RM59.6 billion tax revenue target this year under the SST before proposing a hybrid system that merges the SST and GST. He stressed that the government should disclose the details of tax refunds to businesses, the speed of refund processing, the total tax collected after refunds, and sectors experiencing double taxation issues and the extra costs businesses face for compliance.
These details are crucial as they will determine whether the new system will be easier, fairer, and more effective than the SST.
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