GST is dead, finally, says Guan Eng

Melati A. Jalil Melati A. Jalil Updated 5 years ago · Published on 8 Aug 2018 8:29PM · 7 Comments

THE bill to repeal the goods and services tax (GST) was passed in the Dewan Rakyat today, marking another nail in the three-year-old consumption tax system’s coffin. 

The bill was passed by a voice vote.

The outgoing GST system which was introduced in April 2015 by the former Barisan Nasional (BN) government, will be replaced by the sales and services tax (SST) system. 

“Finally, GST has died,” Fnance Minister Lim Guan Eng said during the third reading of the Goods and Services Tax (Repeal) Bill 2018.

“Al-Fatihah to GST,” an unidentified MP called out in reply, to laughter from the floor and in the media room.

The Sales Tax Bill 2018 and Service Tax Bill 2018 were passed by the Dewan Rakyat yesterday and today, respectively. 

Both bills still need to be passed in the Dewan Negara which is controlled by BN. BN has 29 senators, controlling the majority in the Dewan Negara. Pakatan Harapan has six senators, other political parties have 16 senators between them and 19 seats are vacant.

The single-tier tax regime to be implemented on September 1 will charge 10% for any taxable goods and 6% for any taxable services. The sales threshold for service tax registration purposes to RM500,000 annually for all taxable services.

Lim earlier today said he couldn’t guarantee that prices of goods will not increase once the new tax is in place but he believed the impact of SST would be half that of GST. 

He  said only 43.5% of services were subject to the SST, compared with GST’s 64.8% of services subjected to the goods and services tax (GST).

He said the number of goods and services not subjected to SST was 10 times more.

The RM17 billion the government expected to collect from the tax this year would be returned to the people, he said.

A total of 5,443 items would be exempted from SST, compared with GST’s 540 items. – August 8, 2018.

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Comments

  • Hidup PH, Hidup Rakyat. PH tak berani curi wang rakyat. Rakyat dapat banyak benefit.

    Posted 5 years ago by Tam Yan Cheng · Reply

  • All said and done!! PH get a grip of what is going on in the country. Even with the demise of GST and the revival of SST, prices in the wet market, sundary mini market and supermarket are still as high as it was with GST. What's the difference. Rakyat are still agonising on the juggling of their financial ability. It is either the rakyat are hookwinked in thinking that GST is really all that bad or the enforcement of PH government inability to stamp down ridiculous pricing. Do not gloat over the victory and bloated ego in vanqusihing the previous regime bad taxation system. Let Rakyat see the tangible proof that PH is good in administration. Tomorrow it is 3 months of PH in the Government and the basic neccessities of low prices for consumable goods are still wanting. Buck up or we shall shake PH up.

    Posted 5 years ago by Lee Lee · Reply

    • And you would vote BN back ?

      Posted 5 years ago by Ali Khan · Reply

    • You got right thank you Ali Khan.. agonised half and 60years .. PH 4 months only and their been threatened ..be patient Malaysians
      I for sure would never vote BN their buried for good ..period.

      Posted 5 years ago by Manjit Charan · Reply

  • Check and balance needed on the price in wholesale market and the major markets in the country. Once the price stabilize as lowest in the central market in every major city and town...the small traders will feel the ripple effect and won't sell high.

    Posted 5 years ago by Will Be Humble · Reply

  • Ahli Pontian Mazlan looks like the crook in GST. A smelly person that has shit.

    Posted 5 years ago by Will Be Humble · Reply

  • HIDUP PH give PH some Space n Time BN n UMNO can ROT IN HELL for GOOD for the damage they hv done to Malaysia

    Posted 5 years ago by Tharan Singh · Reply