IN welcoming the government’s willingness to consider the idea of reinstating the goods and services tax (GST), Datuk Seri Dr Wee Ka Siong says at least it has been proven that the tax system is a good mechanism to generate revenue.
“I welcome the Economy Minister’s (Rafizi Ramli) announcement on Monday that he is willing to consider the GST. I am relieved.
“Previously (they were) against GST, now (they) are willing to discuss. That is progress,” Dr Wee (BN-Ayer Hitam) said while debating the 12th Malaysia Plan Mid-term Review (12MP MTR).
He said while Barisan Nasional was once criticised for rolling out the tax system, it has now been proven that GST is effective in adding to the government’s coffers.
However, Dr Wee said some changes could be made from the old GST.
“We can have zero-rated, an exemption list, and enable cash handout for the B40 with higher tax collection. There is no issue.
“If 6% is too high, we can reduce it to 4%,” he added yesterday.
He said GST could be reimplemented with improvements made to the tax refund system.
Dr Wee had earlier called for the reinstatement of GST, which was introduced during Datuk Seri Najib Razak’s administration, and repealed after Pakatan Harapan came to power.
On Monday, Rafizi said the possibility of reviving GST remains open.
He told reporters after attending the tabling of the 12MP MTR in Parliament that although current plans were focused on the introduction of capital gains tax next year, other forms of taxation would also be considered.
In welcoming the initiatives on the 12MP MTR, Dr Wee said it is important to review the income classification for the T20 group when it comes to the disbursement of targeted subsidies.
“The T20 group is divided into two categories; the T1 and T2. The salary of the T1 category is between RM10,961 and RM15,039,” he said.
Citing examples, Dr Wee said going solely by household income, this could also mean that with their cumulative salaries, a couple who are civil servants or M40 would be pushed to the T20 category.
“They will then be categorised in the T20 category, the same as the Tan Sri, Datuk and Tun. This group will not get targeted subsidies.
“So I want to ask the government to relook this category,” he said.
He said the government should also look at ways of incentivising SME employers who have workers on maternity leave for more than 90 days.
This is in line with the government’s aim of increasing women participation in the labour force to 60% within a decade.
Dr Wee also said there must be a masterplan to urbanise the 600-plus Chinese new villages.
