Anwar says GST efficient, but people's income too low

The goods and services tax (GST) is an efficient and transparent taxation system, but it is not yet suitable for re-implementation because the rakyat’s income threshold is still low, said Prime Minister Anwar Ibrahim.

Anwar, who is also the finance minister, said the government did not completely reject the proposal to re-implement the GST, but the ability of low-income people must be taken into account first because the taxation system has a comprehensive impact.

“We postponed (GST) because the income of the people was still too low. My opinion at the time was that people with an income of RM2,000 were still affected, although we gave some exemptions.

“Sugar and rice are not affected, but when people buy other goods or ride the bus, indirectly GST (is imposed), meaning it is comprehensive,” he said during the Finance Ministry’s monthly assembly in Putrajaya today.

Anwar said the government believes that the re-implementation of GST should only be considered when the average income of the people has increased to a more reasonable level of at least RM4,000 a month.

- Bernama

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