Implementation of the Goods and Services Tax (GST) will help the government tackle any drop in tax revenue in line with depleting oil reserves, Prime Minister Najib Abdul Razak said tonight.

NONE He said though much of the country's income and growth hinged on oil revenue, this source of revenue would slowly disappear as its resources are finite.

"To proceed with the GST, we will do so in a structured and gentle manner. The tax will be introduced in neutral fashion in tandem with current service levels and sales tax so that it is not an added burden (to the people)," said Najib, who is also finance minister.

Najib said basic goods and essentials would be exempted from GST to ensure the tax regime did not affect low-income earners.

The tax collection system would be analysed in detail to ensure efficient collection, he said.

"Our goal is not to tax basic goods and services, but to broaden revenue base so that we are not overly dependent on one sector to fuel the country's future growth," he added.

- Bernama