KUALA LUMPUR: The government is not against implementing the Goods and Services Tax (GST), but doing so requires detailed consideration, including assessing the appropriateness and ensuring that it does not burden the people.
Economy Minister Rafizi Ramli said the government would not be pressured into implementing GST if it could burden the people, without considering the coordination of subsidies, governance and other related aspects.
"We want the burden of GST to be imposed on specific groups, not on all citizens.
"This is because the income of the people has yet to reached the level of progressive wages. We can consider all taxation systems including GST, but we are trying our best to close loopholes and 'track' those who should pay taxes," he said.
He said in the 'Yang Bakar Menteri' podcast with Nazri Hamdan on the X platform, Facebook and YouTube, on Monday night.
The podcast, which will be broadcast every two weeks is Rafizi's latest approach in enlightening the public on the country's economic issues.
GST was implemented for the first time in this country in April 2015 and was suspended in June 2018. It was replaced by the Sales and Services Tax (SST) system starting in September 2018.
Rafizi explained a new taxation system will be considered after a more progressive salary system is achieved and the purpose was not as an additional burden.
He said, the government is open to implementing the best, including considering the GST.
"People say we don't have a fixed position, but we have to look academically and in economic theory for the development of the country and what form of tax is appropriate for the country... a country whose economy is not mature, when GST is implemented, everyone bears the tax burden.
"The situation is different from developed countries, they have an organised tax system. Malaysia's problem is in the middle, many people do not pay taxes and if GST is implemented, everyone will have to pay," he said.
He said although Malaysia's tax collection is one of the lowest in Asia, it is not a parameter for the country to return to implementing GST.
"We need to examine how to impose taxes, is it the only way... I say we are open (about GST), but we need to consider every angle before making a decision.
"Secondly, dollars and cents, SST tax returns are roughly the same as GST.
"So far, if you look at it, our government's stance is to try to avoid tax being imposed on everyone but let it be on the rich. We will be guided by all these things," he said.
Rafizi said, there are many methods that can be done to strengthen the country's economy.
"So if we implement GST, make sure it remains the same and let it be less than 10 per cent because there will be no lowering of that rate after implementing it," he said.
"The national debt has increased in 2022, increased by 10 times. So we have to cut the rest.The country will in the future become a petrol importer if consumption surges due to many people buying vehicles using fuel engines.
"A more suitable economy is one that transitions to electric vehicles," he said when asked about the formula for lowering the price of vehicles that he once expressed when he was in the opposition and on the rationalisation of petrol subsidies.