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GST A Source Of Revenue For Government

By Monday June 27th, 2011 No Comments

KUALA LUMPUR, June 27 (Bernama) — The Goods and Services Tax (GST) is a source of revenue for the government in balancing its tax income and expenses, said Prime Minister Datuk Seri Najib Razak.

During a Question and Answer session with participants from the Young Corporate Malaysians, here today, Najib was asked if it was possible to reduce tax on imported cars.

“We do not have much option in this respect. We cannot raise income or corporate taxes or even raise the price of RON 95, and the government has to find revenue,” he said.

Hence the GST.

He also said the country’s inflation rate was still in control with the subsidy of the RON 95 fuel as well as other subsidised items.

“Inflation has been global phenomenon. However, if you look at other countries that have higher petrol prices and other essential items, we are still competitive,” he said.

He said it was important for wages to be competitive and in synch with the level of productivity and innovation.

He said Malaysians’ skills should not be undervalued.

“Some of these professionals have to work long hours but are not getting as much as they should,” he said.

For Malaysia to move to a higher income economy and achieve its targets, it would have to achieve a six per cent economic growth annually, he added.

Source : Bernama

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