MIER chairman Tan Sri Dr Kamal Salih speaks during a press conference in Kuala Lumpur October 1, 2019. — Picture by Yusof Mat Isa
KUALA LUMPUR, Oct 1 — Pakatan Harapan should reintroduce the Goods and Services Tax (GST) at a lower rate to safeguard government revenue against oil price instability, the Malaysian Institute of Economic Research (MIER) suggested today.
MIER chairman Tan Sri Kamal Salih said the GST was more effective than the Sales and Services Tax (SST) the government introduced as its replacement.
The proposal was among the items on MIER’s wishlist that they hoped would be implemented for next year’s federal Budget.
“I think they have to rethink their taxation systems, because when the last government introduced GST, it was after a lot of effort, and studies, and when the oil price was going down, GST (revenue) was what was keeping the government afloat.
“But now the PH government has abolished GST and I was one of those who counselled them against abolishing it because the SST system, no matter how you expand the sectors or despite the information system and enforcements, it will still not be enough to fulfil the requirement which was produced by GST.
“GST was a fair system; some people say it’s regressive because the poor will be affected, but we have got exclusion clauses that will keep or protect the lower income groups,” he said.
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