Statement on abolition of GST is fake

PETALING JAYA: A letter purportedly by the Finance Ministry declaring that the Goods and Services Tax (GST) will be abolished in June is fake.

The Finance Ministry has officially debunked the letter, which bears the Minister’s official and which has been going viral on social media and via WhatsApp.

The ministry posted a photograph of the alleged statement with a strikethrough and the word “palsu” (fake).

The fake letter also claimed that there would be no new taxes introduced for two years and that the Sales and Services Tax will only be introduced in 2020.

The newly elected Pakatan Harapan government had pledged to abolish GST, but has noted that this would take some time.

Senior tax consultants said the law governing GST has to be repealed and a new law on SST has to be passed in Parliament first.

“For this to happen, a Parliament sitting must take place. Legally the GST cannot be replaced with the SST overnight,” said one tax consultant.

The laws that governed the SST, which are the Sales Tax Act 1972 and the Service Act 1975, were repealed earlier.