najib trying to deceive people....at corporate, income tax cuts with GST

Malaysians could see a cut in corporate and personal income taxes should the goods and services tax (GST) be introduced, said Datuk Seri Najib Razak today.

The prime minister was coy however on when the GST, which has already been postponed several times, would be implemented.

“I will tell you later,” Najib (picture) told reporters at the Budget 2012 Consultation when asked if the GST would be implemented next year.

He said GST would be implemented when the public has full understanding of it and his government will assess the public’s readiness.

“I will announce when the time comes,” he said.

Touching on the 2012 Budget which will be tabled on October 7, Najib said it will contain programmes that will benefit the people and a few major programmes will be launched even before the Budget, in June and July.

“Putting the people first will be the theme not only for the Budget but also of the government,” he said.

The Najib administration had postponed the implementation of the GST indefinitely in October last year, a move analysts said showed the government’s lack of political will and indicating that a general election could take place this year.

The postponement of the GST came as the government was embarking on a slew of big-ticket projects in its Economic Transformation Programme, such as the RM43 billion new KL MRT, which are expected to boost the economy and possibly increase the feel-good factor ahead of polls.

The GST Bill was tabled for reading in Parliament in December 2009 but its second reading, originally planned for March 2010, was postponed due to fierce political resistance.

It was originally expected to have been implemented by the middle of 2011.

The tax was expected to help the government reduce the federal budget deficit, which came in at 7.6 per cent of GDP in 2009, and grow revenue by widening its tax base as currently only about 10 per cent of workers pay income tax.

Government revenue is heavily dependent on taxes and dividends paid by Petronas, which make up over 40 per cent of its income. The national oil company’s dividend payout ratio has ballooned from 39 per cent of profits in 2006 to 74 per cent in the 2010 financial year, raising concerns that its ability to reinvest could be affected.

Some members of the public have approved the GST proposal as it is expected to spread the tax burden more evenly across the population. There is some expectation, however, that income tax rates should come down if GST is introduced.

Others have criticised the proposal, saying that the government should first address revenue leakages and wastage before introducing new taxes to boost its income.



comments


People first? Then you should know what to do with Lynas project... People first konon, u think malaysian living under the rock is it...

Once the GST is introduced, there is no way the Govt will remove it. The only thing they would do is to tune it up. And the tax can be marginally cut for now and increase shortly once GST is implemented.

GST won't be introduced now because of GE13 election, but once the election is over and BN is still in power, then GST will most likely be introduced. There is no escaping it unless, of course, the govt. is changed.

The GST will burden the low income people even if it will help the income tax payers.
As we know the majority of the country population are still the low income groups. So which are the peoples that the government would rather help? Please think carefully Mr PM before making any decisions.