PETALING JAYA: Those serious about tax reforms for the country should take heed of the latest Finance Ministry’s fiscal review report, which alluded to the fact that the goods and services tax (GST) is more beneficial compared to the Sales and Services Tax (SST), says Datuk Seri Dr Wee Ka Siong.
“Relevant parties should take note of the report, especially on page 17,” said Dr Wee, who is the Ayer Hitam MP.
“I recommend the parties concerned re-read the report you prepared; you yourself said GST is more beneficial to the economy.
“It is also clearer and more transparent about reducing tax evasion.
“As such, why not implement your own proposal so that it can be considered a good solution for the economy?” he said in a video posted on the Ayer Hitam Facebook page yesterday.
Dr Wee said the report also mentioned the impact on consumers, whereby for SST, the sales tax applicable at the production level is indirectly accumulated along the distribution chain, with the added tax element and cost of the sold product.
In comparison to GST, the cost of goods and services can be reduced because businesses can claim input tax credit from the government; therefore, the final price may be lower because it is not affected by double taxation, he said.
“As a former Cabinet member, I understand the government needs revenue, but I often voiced out against the implementation of taxes that impose a burden on the people and the economy simultaneously,” said Dr Wee, who suggested that an alternative could be to do it in a in a step-by-step manner with adequate notice given.
“Don’t do it at the wrong time. I hope this time the concerned party can consider my sincere suggestion. I can no longer raise my objections in the Cabinet like before.
“So, as a representative of the people, as a spokesman for the people, I can only make sincere suggestions through Parliament and social media,” he said.
Dr Wee said his concern stemmed from reading reports from the Statistics Department of Malaysia on the nominal increase rate of Malaysian wages and on wholesale and retail trading, as well as the MOF’s Economic Survey 2024 and the Fiscal Outlook & Federal Government Revenue Estimates 2024.
He said the reports show that more people are set to face hardships, more so when the recent two percentage point increase in SST, the implementation of low value goods tax and the increase in utility bills “came all at once”.
