Second Finance Minister Ahmad Husni Hanadzlah today dismissed speculations that the implementation of the controversial Goods and Services Tax (GST) would be called off.

ahmad husni hanadzlah He said that the cabinet yesterday discussed aspects of the GST, especially the people's understanding of the proposed tax system and its implementation.

"We did not say cancel. We discussed in details the implementation of it in terms of people's familiarity and on how ready we are.

“We do not want to face teething problems later, which may cause difficulties to the people," he said when asked by reporters to comment on speculation that its implementation has been called off.

The GST is to be implemented next year. The government said it would be introducing GST at four percent beginning 2011 to replace the existing sales and services tax.

No final decision

Husni said that no final decisions have been made on the new tax.

The opposition has argued that the tax would burden the poor as all Malaysians - whether rich or poor - are forced to pay the tax.

There are also fears that the GST would be increased in the coming years.

Asked on the New Economic Model (NEM), he said it will be in line with the ‘People First’ concept of Prime Minister Najib Razak.

Husni also said that the NEM will be the basis for the 10th Malaysia Plan.

Najib today announced that the first stage of the NEM will be announced on March 30.