MCA has expressed concern over government-private ventures into tax collection, following the claim that a firm will receive 50 percent of the tax revenue it helps collect for the Royal Customs and Excise Department.

 

In a press statement today, MCA vice-president Chua Tee Yong said the matter was highlighted in a commentary in theSun today.

 

The commentary by theSun senior editor R Nadeswaran was based on a report by CIMB Research on MY EG Services Bhd's deal with the federal government to conduct online tax collection.

 

The report estimates that the federal government will only receive 50 percent of the goods and services tax (GST) monies collected by the firm.

 

Nadeswaran ( left ) also wrote that the deal was inked after a "negotiated tender exercise".

 

To this, Chua said it was "worrying" that the cost of introducing a new tax in form of the GST, would lead to a private consortium benefiting.

 

"Such a contract award is not a positive development and it will definitely create more doubt on the implementation of the GST," he said.

 

Chua said the people want taxes to benefit national development and not private companies.

 

"We are equally concerned on this matter and I have submitted a question for this current Parliament session on the cost of the GST implementation and requested a comparison with other countries on the implementation of the GST," he said.

 

The GST will be implemented on April 1, 2015.