Expectations, apprehensions and concerns on GST

THE implementation of a Goods and Services Tax (GST) to replace our existing Sales and Services Tax (SST) has become stale news since the proposal made its maiden appearance during the Budget 2005 speech on Sept 10, 2004. Subsequently Budget 2007, 2008, 2009 and 2010 came and went without seeing the affirmative sight of its implementation until the first parliamentary reading of the GST bill in December 2009. Nevertheless, the second reading, which was originally scheduled for March this year, was postponed indefinitely. The reason is that the Government needs more feedback from the public.

In view of the national importance of the proposed GST, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has conducted a taxation survey which includes a “pre-GST” survey to seek views from the small and medium enterprises (SMEs) and gauge their reactions relating to the proposed GST model. The survey aims to understand their expectations in order to communicate them to the Government and the policymakers for their consideration.