KUDAT: Consumers need not worry about inflation induced by the implementation of Goods and Services Tax (GST) because the government will be controlling the prices of goods.
Minister of Special Tasks Datuk Teo Chee Kang assured GST was a fair tax regime that would come into effect on April 1 this year.
He said businesses that have sales turnover over RM 500,000 a year, or RM 1,369 daily, should have registered for GST by February 28 this year, or they would be penalized.
“GST is imposed on consumers, not businesses. There are currently 160 countries in the world that have adopted GST. Some individuals who have previously objected GST have changed their minds after understanding how it works, and they now opine that GST is better than other tax regimes,” Teo said when officiating at the opening ceremony of a GST seminar jointly organized by LDP Tanjung Kapor division and Kudat Community Development Leader (CDL) office here recently.
The GST seminar was attended by over 100 businessmen in Kudat. Studies have shown that 12 million of the 30 million population in Malaysia should be paying their taxes.
Instead, Teo said only around 2 million do so while the remaining 10 million have been evading taxes, which was very unfair to the tax payers. He added that taxes were necessary to cover a country’s expenditure.
“Hence, the government decided to implement GST because it is only fair that all consumers pay taxe and at the same time, GST will enable our country to move forward,” he said.
He went on to say that more than 20,000 businesses in Sabah out of 350,000 businesses in Malaysia have registered for GST.
He hoped that the businesses would cooperate with the government to ensure the new tax regime ran smoothly.-Sayangsabah