SIBU: Goods and Services Tax (GST) is a system adopted by almost 200 countries worldwide, Assistant Minister of Youth Development and Asajaya assemblyman Datuk Abdul Karim Rahman Hamzah said yesterday.
“Had the tax system been counter-productive, it would not have been adopted by a majority of countries in the world, whether developed or undeveloped,” he pointed out.
“GST is implemented in 160 countries in the world…definitely, there will be hitches here and there when it is implemented come 2015. But Malaysians would soon adjust themselves to this new system,” he said.
He was reacting to Gombak MP Azmin Ali who had said that Malaysia was seen as not ready to implement the new tax because more than 40 per cent of the people had household income of less than RM2,500 a month, with 80 per cent being Malays and Bumiputras.
Azmin was reported by Bernama as saying that GST would squeeze the low income earners and the poor.
He said the government must take a leaf from developed nations which only implemented GST after their tax infrastructure were strong and income taxes were reduced to avoid burdening the people.
Meanwhile, Kapit MP Datuk Alexander Nanta Linggi said: “I do agree with YB Azmin, MP Gombak. That the current tax infrastructure must be strengthened and consolidated so that the tax system is efficient and only hit the right target and objectives.
