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KUALA LUMPUR – Tax education must be stepped up immediately to ensure Malaysians understand the differences, advantages and shortcomings of the Sales and Services Tax and the Goods and Services Tax before any new system is introduced.
Umno Supreme Council member Datuk Seri Dr Ahmad Maslan said public understanding of both systems was crucial following the government's proposal to merge elements of the SST and GST into a hybrid tax system.
"Tax education must be carried out as quickly as possible by the Finance Ministry and the Inland Revenue Board because the public needs to understand the different tax systems.
"It must be taught quickly, whether through RTM or other media platforms," he told a press conference after the pre-launch of the 13th Malaysia Road Conference at the World Trade Centre Kuala Lumpur on Wednesday.
Ahmad, who is also deputy public works minister, said the proposal to study a hybrid system was a reasonable approach worth exploring in the search for a tax structure best suited to the country's needs.
"The Prime Minister proposed a hybrid GST and SST system, this is the first time I am hearing of it. I am therefore suggesting that the public be given a clear understanding of the different systems," he said.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim was reported to have said the government was open to studying the possibility of merging both tax systems to develop a more progressive national tax framework.
Anwar, who also serves as Finance Minister, clarified that the government would maintain the SST as the basis of the current tax system, but did not rule out incorporating certain GST features deemed suitable in creating a better overall system.
