GST helps plug illicit funds, says deputy minister – Bernama

The goods and services Tax (GST) implementation on April 1 will help reduce the flow of illicit funds to 20% from the present 30%, Deputy Finance Minister Datuk Ahmad Maslan said.

"This is one of the merits of the GST and I do not understand why the opposition continues to advocate the sales and services tax.

"This means they are for the black economy and shielding tax evaders and defaulters," he told reporters after briefing police personnel on the GST, the 2015 Budget and current issues at the Johor Police Contingent Headquarters in Johor Baru today.

Ahmad said according to the World Bank, black economy (untraceable, and hence untaxable, business dealings) amounted to 30% of the gross domestic product.

On the GST, Ahmad said the nationwide GST information programme would continue until May or June to enlighten the public on the concept as detractors had distorted it.

Until yesterday, 319,435 companies have registered for the GST which is expected to increase the country's revenue by RM1 billion to RM24 billion. – Bernama, February 25, 2015.