The previous government withdrew the Goods & Service Taxes (GST) back in June 2018, and it was replaced with Sales & Service Taxes (SST) a few months later.
Former Ministry of Transport, Wee Ka Siong recently shared why he thinks GST should make a comeback. On his Facebook post, Wee suggested 3 proposals for the upcoming Budget 2024, and he started off with the idea of reviving the GST.
GST making a comeback?
“I have repeated many times for the government to bring back the GST. We cannot focus solely on spending and expenditure without generating a source of income, so bring back the GST.”
Previously, Malaysian consumers were charged with a 6% of GST but this time, Wee said that the amount can be reduced to 4%. In an effort to improve the mechanism, Wee also suggested to have zero rated, an exemption list and enable cash handout.
Imbalance cost pass-through (ICPT)
Next, Wee mentioned imbalance cost pass-through (ICPT) which has affected the small, micro and medium enterprises.
“ICPT has led to the electricity tariff adjustment and the increase of employees’ maternity leave from 60 to 98 days,” Wee added.
In his video, he called for the government to lower the ICPT, before those in the industry suffer the consequences from higher expenses, higher cost and longer maternity leave.
“It wouldn’t be possible for the employers to bear it all.”
Tax exemption for the M40 and T20
Last but not least, Wee suggested to raise the individual tax exemption from RM9,000 to RM12,000 due to the inflation rate.
“This will allow the M40 and T20 groups to breathe. If they spend more, it will have a multiplier effect. When a nasi lemak seller earns an additional RM100, she can buy cucumber, anchovies and other supplies.”
He continued his explanation by saying, “So, the RM100 can be multiplied to become RM1,000.”
At the end of the clip, Wee expressed his hope to see Malaysia emerging stronger in terms of economic growth.
Do you agree with Wee’s proposals for the upcoming Budget 2024? Do you think the country’s economy will prosper with the return of GST?