Datuk Seri Najib Razak says there are just over a million
taxpayers in a country with a population of 28 million and the GST is necessary
for the economy.
PUTRAJAYA, May 5:
Prime Minister Datuk Seri Najib Razak today impressed upon
civil servants the necessity of the goods and services tax (GST), likening it
to antibiotics.
In his monthly address to staff of the Prime Minister’s
Department, Najib also warned them of certain quarters out to incite hatred
against the government over the GST.
“The simple analogy is, when we need antibiotics, we need to
take the antibiotics and finish the full course of it.
“When you finish the course, then your health will recover.
“So, in the journey for the country’s transformation, we
need to swallow the medication and be confident that the outcome will benefit
all of us and see a successful nation,” he told civil servants gathered in the
courtyard of the Prime Minister’s Department in Putrajaya, Malaysiakini
reported.
Despite the widespread May Day protest against GST,
Putrajaya has maintained the importance of GST for the economy.
Najib said many taxpayers
evaded paying income tax and there were just over a million taxpayers in
a country with a population of 28 million.
“How often have we heard about supposedly poor people who
can afford to send their children abroad for a foreign education?
“This is an obvious case of under-declaring income or paying
less than what you are actually supposed to pay,” he said.
“The GST is a progressive tax which will benefit Malaysians
as it depends on consumption. Many Malaysians do not pay income tax.”
On May Day last week, 25,000 people had gathered near
Dataran Merdeka here to voice their dissatisfaction with the scheduled next
April’s implementation of GST.
GST is a progressive tax system and its introduction is not
meant to burden the people, said Najib, adding that the GST awareness drive
would have to be intensified to enlighten the people on its merits so that no one would protest for no reason.
“We must explain that many people are not paying taxes. As
Finance Minister, I know that many are not paying taxes or are paying less than
what they should have.
“This system (adopted by 90% of countries) is more
progressive as it depends on how much our expenses are.
“And in this way, together with steps taken to exclude taxes
on essential items used by the people, the introduction of GST will not burden
the people.”
Najib said the government would look into the possibility of
exempting more goods and products from the GST without affecting the revenue
base expansion.
The GST implementation can help stimulate growth and enable
the country to provide more infrastructures and basic needs in urban and rural
areas, he said.
“If we do not build more modern infrastructure, we will lose
our competitive advantage.”
The Prime Minister said more expenses were needed for human
capital as it was also a critical factor in terms of competitive strength of
any country.
“The tax revenue is also required for healthcare as there is
a need to have more hospitals, medical equipment, etc, that are urgently
needed by the people.”
Najib said adequate revenue was also required to take care
of 1.5 million civil servants.
“This is the philosophy of the government of the day and I
believe that such a move would elevate the country to the stature that we
aspire.”
Najib said if the system was proven effective in 90% of
countries, it must have been found to be a progressive tax system that was fair
and acceptable to the people.
The government will implement GST from April 1 next year at
a fixed rate of 6% to replace the sales tax and services tax which total 16%.
source: therakyatpost.com
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