KUALA LUMPUR: The government has no plans as yet to reintroduce the goods and services tax (GST) as the sales and services tax (SST) is easily understood by traders and the public.
Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat today that the country had already used the SST for over 40 years, and that the taxation system could still be improved.
"Reintroducing GST would need a longer preparation period both on the government side and in the industry.
"The government will continue to ensure that improvements to the existing tax system do not negatively impact vulnerable groups, with efforts to reduce the regressive effects and maintain controlled inflation, before evaluating the need to introduce new consumption taxes such as GST."
Lim said this in her speech during the second reading of the Measures for the Collection, Administration and Enforcement of Tax Bill 2024 in the Dewan Rakyat today.
Meanwhile, on the e-invoice system, she said the Inland Revenue Board had introduced the MyInvois portal and mobile application which businesses could access and use for free to submit e-invoices.
The Tanjung member of parliament said this was in an effort to help traders implement the e-invoice system without additional costs to their business.
"The government is committed to help all businesses, including micro, small and medium enterprises throughout the six-month transition period in implementing e-invoicing.
"The engagement sessions, education, and hand-holding programmes will continue to be intensified across the country to explain the process and mechanism of implementing e-invoicing," she said.