FT minister admits to shortcomings in GST implementation

The goods and services tax (GST) is a good tax system but there are some shortcomings in its implementation that need to be addressed, said Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor.

Tengku Adnan, who also the secretary-general of Barisan National (BN) and Umno, said the shortcomings could be overcome by intensifying awareness campaigns for the people.

"We need taxes, but the explanation must be intensified in order to avoid confusion (among the people)," he said in Putrajaya today.

He said a good understanding of the sales and services tax (SST) prior to this, saw people accepting the system.

Meanwhile, Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah said the implementation of GST should be continued if the country wants to be economically strong.

He said cancelling the tax would likely cause long-term problems for the country in terms of revenue, among other things.

"However, the cancellation of GST depends on the cabinet. We have already implemented the GST, and if GST is withdrawn, it means we are not consistent with what we implement.

"So if the country wants financial freedom and be strong economically, then GST should continue."

Malaysia implemented GST at the rate of 6% from April 1.

Irwan Serigar said the implementation of GST was to diversify the government's revenues, and not just rely on oil related revenue and commodities.

He said many quarters praised Malaysia for taking the right step in the implementation of GST, while even the World Bank and the International Monetary Fund supported the action. – Bernama, May 9, 2015.