It's fine to impose the goods and services tax (GST) as it comes with the abolishment of the current sales and service tax, said AmInvestment Bank Group senior economist (economic research), Manokaran Mottain.

"It will be acceptable to Malaysians if it comes with the reduction in personal tax as the GST will be an additional load to taxpayers," he told Bernama today.

Manokaran said this when commenting on the GST Bill.

He said implementation of the new tax structure should preferably be in 2011 or 2012 as anything earlier would catch the public unprepared.

On Monday, Prime Minister Najib Abdul Razak said in New York that a bill relating to the proposed introduction of the GST would be tabled for first reading at the end of the current Dewan Rakyat sitting.

Meanwhile, Second Finance Minister, Ahmad Husni Hanadzlah, said today the government planned to impose GST at four percent.

He said the government expected an additional RM1 billion in annual revenue one year after the GST was introduced.

Not a burden

Meanwhile, Inter-Pacific Securities Sdn Bhd research head, Anthony Dass, said the proposed four percent for the GST would not burden the people.

"It is a good and positive move but how are they (government) are going to do this?" he said.

Citing an example, Dass said, the Singapore government lowered the corporate and income taxes after introducing the GST in the first year.

He said such a move could be emulated in Malaysia in order to benefit the corporate and the lower income groups.

Anthony said the government must undertake aggressive roadshows to promote the GST.

- Bernama