Prime Minister Datuk Seri Anwar Ibrahim today announced that the Goods and Services Tax (GST) will only be reimplemented in our country once the minimum wage threshold is at RM3,000 to RM4,000.
He was quoted as saying the above when officiating the Associated Chinese Chambers of Commerce and Industry’s (ACCCIM) 78th Annual General Meeting (AGM) at One World Hotel in Petaling Jaya, Selangor, today.
PMX says GST will be implemented when the minimum wage threshold is RM3,000
In his speech, Anwar, who is also the Finance Minister, acknowledged GST as an efficient and transparent tax system that would help the Federal Government’s coffers with higher revenue collection.
However, the Prime Minister believes that the poor shouldn’t be burdened with GST at this moment in time.
Anwar asserted,
“I agree, GST is the most transparent and efficient tax system… But my view is, give it some time, some years. Make sure that the wage threshold increases to the minimum of RM3,000 to RM4,000; then we can adjust the policy.”
Watch the Prime Minister’s speech here:
GST was introduced in Malaysia in 2015 and abolished 3 years later
For reference, Malaysia’s current monthly minimum wage is at RM1,500. Furthermore, GST was first introduced in April 2015 by then-Prime Minister Datuk Seri Najib Razak.
For illustration purposes
However, the implementation was met with backlash from Malaysians and was among the main reasons why Najiib-led Barisan Nasional (BN) lost in the 14th General Election (GE14) in 2018.
On 1 June 2018, the recently elected Pakatan Harapan (PH) Federal Government abolished GST.
Over the past few years since then, the tax system has had a resurgence in our country, with many Malaysian leaders and analysts urging for GST to be reintroduced due to its transparency and efficiency, which, as we’ve mentioned earlier, even Anwar acknowledged.
So, what do you guys think of the Prime Minister’s statement? Share your thoughts with us in the comments!
This post first appeared on WORLD OF BUZZ.