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Customs DG slams PH proposal to reinstate SST

 | September 13, 2017

T Subromaniam says such a move on the part of the opposition if it comes to power in GE14, would make Malaysia a laughing stock.

T-Subromaniam-Pakatan-Harapan-sstPETALING JAYA: Customs director-general T Subromaniam today slammed the opposition’s proposal to reinstate the sales and services tax (SST) to replace the goods and services tax (GST) if it takes Putrajaya in the next general election (GE14).

Claiming that the move would make Malaysia an international laughing stock, Subromaniam said the GST was a more comprehensive, efficient and transparent tax system, The Star reported.

“The whole world will laugh at us if we were to revert to the SST,” he was quoted as saying.

Subromaniam was responding to Pakatan Harapan (PH) chairman Dr Mahathir Mohamad, who said last week that the coalition would restore the SST to replace the GST if it won the GE14.

“GST replaced the sales tax, so if we abolish GST, we must restore the sales tax,” Mahathir was quoted as saying about the GST that was implemented in April 2015 to replace the SST.

However, Subromaniam said 168 countries had already imposed the GST, with Middle Eastern nations like the United Arab Emirates expected to follow suit.

DAP secretary-general Lim Guan Eng, who is also PH deputy president, said under the opposition, the tax would be zero-rated.

This means that the public would not have to pay any tax on goods or services. There will also be no embedded tax on the final price resulting from any taxes businesses and manufacturers have paid.

This is because businesses and manufacturers can reclaim any GST paid on the assets, purchases or expenses for their businesses, from the government as input tax credit.

0% GST if Pakatan takes over Putrajaya, says Guan Eng


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