Immediate enforcement to resolve GST issues, says Muhyiddin – Bernama

Deputy Prime Minister Tan Sri Muhyiddin Yassin today directed the enforcement agencies to take immediate action to tackle problems encountered in implementing the goods and services tax (GST).

He said he had spoken to the Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek so that legal action and enforcement could be carried out immediately.

"If it takes too long, the people will not see that offenders are being prosecuted commensurately," he told reporters after the nomination process for candidates for the by-election for the Permatang Pauh parliamentary constituency in Bukit Mertajam today.

He said that problems in implementing GST cropped up due to confusion as GST in Malaysia involved three categories.

"The GST that we drew up has exemptions, some are zero-rated and not imposed GST. There is no country in the world that has GST like the one in Malaysia.

“In Malaysia, we do it according to our own style. In the more than 160 countries where GST is implemented, there are no exemptions, everything is subjected to GST. That is where we are special.

"The people don't understand why some goods are subjected (to GST) while others are not. (In addition) why should there be the sales tax when the GST has been imposed. If in the past 10 + 5... now it is only 6%.

"I received complaints that some people impose 'over the path sales tax' (exceeding the actual sales tax). This is not right. The people should pay less but actually have to pay more than necessary.”

Muhyiddin said that complaints on GST as well as the confusion that arose should be given attention and clarified continuously.

He said that GST was a bold move by the government to create a new tax structure that was most effective, the problems were only at the initial stage, which had been expected.

"This (initial implementation problem) was expected, to the extent there is dissatisfaction, feeling of unhappiness. If the feeling of dissatisfaction arises during the election campaign, this worries us.

"But we have to face it, we cannot retreat. This is a long-term decision that will benefit the nation and also the people, with the new tax structure.

“It (revenue) goes into government funds for the benefit of the people.”

Muhyiddin said it was the responsibility of the Barisan Nasional (BN) information machinery and the relevant departments to explain to the people.

"Although they are dissatisfied because they have to make payments (GST), at least they understand, and (the government) finds a way so that the implementation does not burden (the people) in the long run. Such matters must be explained." – Bernama, April 25, 2015.