PKR will review GST if they take over office

KUALA LUMPUR: The much talked about Goods and Services Tax (GST) which has been implemented will be reviewed if Parti Keadilan Rakyat assumes power in the next general election.

Lembah Pantai MP Nurul Izzah when contacted by Astro AWANI said that the party would re-look into the GST bill which was passed at the Dewan Rakyat in 2014.

She said that the GST bill would grant the minister power to reduce the GST rate. “That might be an avenue for us to look at,” she said if the opposition were to rule.

“There are also other tax mechanisms such as the CGT (Capital Gains Tax) and Inheritance Tax. Our focus will be to improve worker’s income and foster the economy with better wealth distribution,” she added.

When asked about the recent price hike following the implementation of GST, she said that the government had said that the price of many items would reduce upon its implementation.

Meanwhile, Batu MP Tian Chua said that the opposition had stressed that the country might face an inflation rate of between 20 to 30 percent should GST be implemented.

“It’s what we have said all along. Normally six percent will trigger 20-30% inflation.

“Such phenomenon has occurred in all countries introducing GST,” he said adding that inflation is an irreversible damage.

He also said that if they come to power, they will work towards improving an individuals income.

“Certainly we need to review GST. If we eliminate corruption and leakages, we shall have sufficient resources for welfare and development.” he said.

The Federation of Malaysian Consumers Associations (FOMCA) on Friday found out that many prices of goods and services have surged between 20 and 30 percent after the implementation of GST.

FOMCA’s recent assessment at the Kelana Jaya shopping mall looked into the regulatory compliance of traders on price tags, price positioning and receipts of payment, following the implementation of GST.

The prices were compared with the shoppers guide price list published by the Ministry of Domestic Trade, Cooperatives and Consumerism (KPDNKK).

Deputy President of FOMCA, Mohd Yusof Abdul Rahman said that they found that most of the price of goods has risen from 20 percent to 30 percent compared to the new price listing in the handbook.