KUALA LUMPUR: A number of government lawmakers have expressed support for the reintroduction of the Goods and Services Tax (GST). They include MPs, who previously were critical of the implementation of the tax regime.
They are now saying that the reintroduction of GST through the tabling of the revised 2023 Budget can help the government to increase its revenue and subsequently carry more development programmes and initiatives.
Pasir Gudang MP Hassan Abdul Karim of Pakatan Harapan (PH), who previously described GST as a 'zalim' (cruel) tax system, now supports the reintroduction of the tax this year.
"I was among the MPs, who were previously vocal and criticised the implementation of GST at the time. However, I am open minded about the tax regime now.
"It is not that I am 'menjilat ludah' (swallowing his own words) but I do not want the government to be ladened with more debts to enable the country to implement development programmes.
"Therefore, I am okay with the government's decision to reconsider (and reintroduce GST) since it can help the government (to increase its revenue)," he told Berita Harian.
Hassan, however, said the rate of the tax should be reduced from six per cent to between three and four per cent if the government decided to bring back GST.
"The rate of GST (if the government plans to bring back the tax mechanism) must be fixed at a lower rate of between three and four per cent… not higher than that," he said.
He was commenting on a news report published by BH, quoting economists and economic experts on ways for the government to increase the country's coffers, including considering to reintroduce GST.
Putra Business School economic analyst Associate Prof Dr Ahmed Razman Abdul Latiff was quoted in the report as saying that the government should look into more ways to increase the country's revenue either through introducing 'cukai makmur' (prosperity tax) or GST, which was abolished during the then PH federal administration in 2018.
Hassan also proposed that the government consider imposing wealth tax against wealthy corporate groups.
"Again, the rate for the (wealth) tax must be low so that it would not affect their businesses," he said.
Jelebu MP Datuk Jalaludin Alias of BN remained firm on his stance that the government should reintroduce a tax mechanism that is fair and transparent to help increase the country's revenue.
He also agreed with Hassan that the rate of the tax should be lower in the event that the government under the leadership of Prime Minister Datuk Seri Anwar Ibrahim decided to bring back the implementation of GST.
"We must look into the current situation when deciding on the rate of the tax. At the same time, we must learnt from the mistakes (committed by the previous administration).
"Previously the rate was high that it became a burden to affected tax payers. This time around, the rate should be fixed at three per cent (in the event that GST is reintroduced into the country's taxation system)," he said.
Kuala Selangor MP Datuk Seri Dr Dzulkefly Ahmad of Parti Amanah Negara, when contacted, refused to comment as he deemed the matter as a "sensitive" issue since it involved government policies.
"This issue involved policies. I do not think that I can share my personal views on the matter. Whatever it is, let the economy minister (Rafizi Ramli) and the prime minister carry out their duties as mandated by the people," he said.
Subang MP Wong Chen also made the same stance as Dr Dzulkefly as he feared that his views could be misinterpreted by the people.
"I do not want to end up in a situation where there is conflicting statements between me and the minister in charge of the matter. I do not want to get into trouble.
"And it is not right for me to provide my personal views on the matters since I do not have (access to the right) data although I am a member of parliament," he said.