00:00Not reintroducing the goods and services tax can carry more political risk than bringing it back,
00:06says former Deputy International Trade and Industry Minister Ong Kianming.
00:11The former Bangui MP said the government will have to introduce or expand other taxes if the GST is not
00:18reinstated,
00:19which could be even more unpopular than the GST itself.
00:22Ong noted that the current government includes coalition partners who supported the GST when it was first introduced in 2015,
00:31which could make its reintroduction more politically manageable.
00:35He added that economic changes since 2015, including wage growth and e-invoicing,
00:41would make a reintroduction more efficient and proposed building bipartisan consensus and oversight mechanisms to improve public acceptance.
00:50Deputy Finance Minister Liu Cintong said GST would only be considered when the median wage exceeds RM4,000,
00:59noting that although it is more efficient than the sales and service tax, it places a heavier burden on lower
01:05-income earners.
01:07Ong said Malaysia is better prepared now with lower poverty rates except in Sabah
01:12and suggested compensating the B40 group through direct cash transfers.
01:16Maslan Ali of University Technology Malaysia said GST could strengthen revenue but remains regressive
01:24and suggested it be reintroduced at a low rate in the next term if the unity government wins GE16.
01:31Natasha Bust, FMT.
01:33A
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