Longer grace period needed for GST, activist says

GEORGE TOWN: A social activist here said the Federal Government should delay the implementation of the goods and services tax (GST) as Malaysians generally had not yet fully comprehended the taxation system or its implications.

Although the new tax system would come into force on April 1, Malaysian Nature Society (MNS) advisor D Kanda Kumar said the lay public was not well-informed on how GST would affect the prices of goods and services.

He said Malaysians were even confused about which goods and services would be affected as well.

“GST should be delayed as Malaysians are not ready for it.

“Some don’t even know that certain items, which were not taxed previously, would have six per cent GST in a few days time,” he said.

He suggested that a longer grace period be given between the announcement and implementation of GST to enable the lay public to fully understand it.

The Federal Government announced the introduction of GST in 2013, giving the people less than two years to prepare for its implementation.

“The government should have taken a longer grace period to explain GST to enable people to greet the tax in a good spirit,” he said.