National Consumer Complaints Centre (NCCC) board member Muhammad
Shaani Abdullah said that local performance was key in ensuring Malaysia
could compete in the uncertain global market.
“We have to be strong locally in order to compete globally. GST and
subsidy reforms provide funds for the government to improve in all
aspects.” he said.
Shaani added that although taxes played a part in making the country more resilient, performance was also imperative.
“GST is more efficient and transparent. Though it does not directly
contribute to the economy, it does provide the government the needs to
maintain infrastructure and services of the country.” he said, adding
this will give the market greater confidence to invest in Malaysia as
said by Naijb.
Muslim Consumers Association of Malaysia (PPIM) chief activist Datuk
Nadzim Johan said GST will indeed increase the country’s global
competitiveness as it is pervasive and goes down to the lowest level of
the economy, the consumers.
“GST ensures the government receives a good stream of income, all for
the benefit of the rakyat. We should improve the present tax structure
to undergo these troubling economic times.” he said.
Nadzim added Malaysians should not be afraid or anxious about the implementation of GST scheduled for April 1 next year.
“Malaysians are used to price hikes. Not a lot of impact would be
felt if they know that this will benefit the country in the long run.”
“Malaysians should start planning their domestic economy and avoid
being thrifty in every sense.” he said, adding the government would
never have planned for the implementation of GST if they were not
confident about it.
Economist Professor Dr Barjoyai Bardai of Universiti Tun Abdul Razak
said Malaysia would be able to stand at par with developed countries
once GST is implemented.
“We are looking at GST as a way to restructure the tax system
positively. In as soon as five years after implementing GST, it will
take over from income tax as a source of government revenue.” he said.
Barjoyai said subsidies on the other hand, did not increase
productivity. “It is high time for the government to reform subsidies.
They should go to the needy groups in society, if it goes to the rich,
it is considered a waste for the country.”
“In reforming subsidies, the government should target the low-income
group and gradually remove subsidies from the high-income group.”
Barjoyai also said GST and subsidy reforms could soften the blow of future financial downturn.
On Monday, Najib said the implementation of GST and the move to
reform the distribution of subsidies will make the nation’s economy more
resilient in an uncertain global market.
Credit to: http://www.nst.com.my/node/26870