BUSINESS

DON: RECONSIDER THE RE-IMPLEMENTATION OF GST TO FURTHER BENEFIT THE PEOPLE

17/06/2021 02:59 PM

KUALA LUMPUR, June 17 -- The government should reconsider the re-implementation of the goods and services tax (GST) which is a wider and fairer tax system that could help improve its revenue, hence benefitting the people in terms of better public services, said Prof Tan Sri Noor Azlan Ghazali.

The Professor of Economics at Universiti Kebangsaan Malaysia (UKM) Graduate School of Business said there are many ways that the GST can be re-implemented, citing that in some countries the tax is collected regionally, depending on how prosperous each region is.

“I am a proponent of GST as I believe that it is a wider or fairer system, but of course you need to introduce that rightly and steadily and also to explain to the public, making sure they understand and see the benefits.

“The worry of tax collection is when you collect tax but the public cannot benefit from it,” he said during the Economic Action Council (EAC) virtual press conference today.

Citing countries like Germany and Finland which collect between 20 per cent and 30 per cent tax, he said the countries provide free education to the people.

When people become more educated, we all get the benefits; less crime, less pollution, less chaos and more disciplined citizens and so on, he stressed.

Malaysia, however, is collecting lower than the other countries and is not at par with what is expected, he cautioned.

Sharing some of his data, Prof Noor Azlan said Malaysia currently has a population of about 32 million with 15 million in the work force. However only two million to three million people pay their tax.

“How can the government redistribute the collection to make sure the quality of living is progressing for everyone?”

Meanwhile, Prof Noor Azlan who is also the EAC secretariat executive director has revealed eight reset agendas, 30 focus areas and 153 reset initiatives as the country is charting an exit plan out of the COVID-19 crisis.

Among the eight reset agendas are embracing the digital economy; promoting technology adoption and advancement; positioning for a shifting global landscape as well as promoting shared responsibility, good governance and sustainability.

He said the findings are part of the EAC secretariat’s “independent study” which are actually not endorsed by the EAC.

The suggestions under the study seek to address short-term and immediate pain as well as what the country needs in the medium- and long-term.

Prof Noor Azlan also said while the country is trying to recover from the health crisis, there is a need for the government to reform certain policies in ensuring the nation’s long-term growth and sustainability.

-- BERNAMA

 

 


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