The people will have to bear an additional tax burden of RM6.4 billion under the Goods and Services Tax (GST) once it comes into force next year, said the Pakatan Rakyat Anti-GST task force.

Parliamentarians Tony Pua (DAP-Petaling Jaya Utara), Saifuddin Nasition (PKR-Machang), and Dzulkifly Ahmad (PAS-Kuala Selangor) were commenting on the controversial bill tabled for first reading yesterday.

NONE They have been steadfast in their stand that a tax system that is introduced across the board, be it three, four or even eight percent, will be a burden to lower income and middle income Malaysians.

The finance ministry is presently looking into introducing GST at a rate of four percent to replace the already existing Sales and Services Tax (SST). It is expected to be finalised once Parliament passes the bill.

Yesterday, Finance Minister II Ahmad Husni Hanadzlah had said that the government is estimating an additional RM1 billion in revenue annually after the first year of its introduction.

The tax is aimed at reducing the government's dependance on revenues from state oil giant Petronas which accounts for over 40 percent of the country's revenue.

According to Ahmad Husni, GST will also see businesses save RM4 billion while exporters would be able to save up to RM1.4 billion under the 'zero-rate' system.

Finance minister's statement does not make sense

Pua, however, said that the minister's statement "does not make sense just as money does not grow on trees".

"This is brilliant legislation, a tax legislation where no one has to pay more," he said sarcastically.

NONE "If businesses reduce tax contribution by RM5.4 billion as stated by the Finance Minister II, while at the same time boost the collection of GST to more than RM13 billion, it can only mean that the additional RM6.4 billion must be collected from the rakyat," said Pua ( right ).

"The question then is, how is it that the minister can come up with figures whereby both the lowest income group as well as the highest income group enjoy savings?

"The savings, which will exceed RM6.4 billion for businesses, are inevitably shifted to consumers, regardless of whether they are low wage workers, retirees, students or your average man on the street," he added.

Asked about the RM22 million Budget 2010 has dedicated for the study of the GST bill, Pua only said: "I don't know... maybe they have already paid the consultant and completed the study, before even the Budget was passed."

Saifuddin told reporters that the Pakatan GST team will undertake measures to raise the awareness of the people as well as draw feedback from academics and industry experts on the bill through roundtable discussions and forums.

According to Saifuddin, they also plan to form a parliamentary caucus on the GST.