Thursday, November 26, 2009

GST may be at 4%

No editorialising here. Thanks to bro Walla, here's the link to the GST Discussion Paper dated 18th July 2005 prepared by the Ministry of Finance. I'm just posting this report for the record:

The government plans to impose goods and services tax (GST) at 4%, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said Thursday.

"We are replacing the current sales and services tax, which is currently at 5% to 10%," he told reporters at the Culture, Ideas and Values Workshop organised by Foundation For the Future at Country Heights Resorts in Kajang.

He said the GST implementation was important for the country's future.

"The revenue source must be sustainable. If we can get sustainable revenues, we can get a good budget," he said.

He said the Consumer Price Index (CPI) would not increase as a result of the GST implementation.

Some selected items especially essential goods like rice, sugar, cooking oil and flour as well as domestic transportation would not be subject to GST.

Husni said the Bill on GST would be tabled in Parliament for the first reading this year, with a second reading in March next year.

GST would be implemented 18 months after the second reading.

The government expected an additional RM1 billion revenue annually after the first year of its introduction.

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