GST helps reduce black economy

JOHOR BARU: The Goods and Services Tax (GST) implementation on April 1 will help reduce the black economy rate to 20% from 30% at present, Deputy Finance Minister Ahmad Maslan said.

“This is one of the merits of the GST and I don’t understand why the opposition continues to advocate the Sales and Services Tax.

“This means they are protecting the black economy, 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 here today.

Ahmad said according to the World Bank, the 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 it has been distorted by detractors.

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.

In his walk about in the area, he explained to the traders benefits of the GST and current issues facing the nation.