KUALA LUMPUR: Finance Minister II Datuk Seri Amir Hamzah Azizan has acknowledged that the government must improve its communication before implementing any new tax measures.
This is to avoid repetition of confusion arising from the service tax (ST) increase to eight per cent from six per cent last week.
Amir Hamzah said there was actually a lot of consultation done with various groups when the ST was announced in the 2024 Budget last year.
"As anything that goes out, sometimes communications could be a little bit better, and we recognise that we should do a little bit more on that side," said Amir Hamzah.
"When we increased the ST, we limited the amount of effect that had a lot of people involved, in terms of food and beverage (F&B) and parking.
"They are not subjected to the increase, and I think that is important as a core principle to the government, increasing revenue while limiting the effects," he told reporters at the launch of "Business Financing Guarantee Scheme and the Housing Loan Guarantee Scheme - 2024 Budget Initiative" today.
Amir Hamzah said a lot of programmes are being enhanced to facilitate redeployment of funds at the low end of society and build better infrastructure for the people.
"I know people talk about where we are putting it but, for example, there were a lot of programmes to fix toilets for schools.
"It sounds strange, but it is important, toilets for schools are important because we want our children to go to school in better conditions," he added.
Amir Hamzah also emphasised that the revenue generated from the tax increase is intended to assist government servants, particularly those in the armed forces who are living in poor conditions.
"This redistribution based on the increase of revenue is good because it's about helping society," he stated.
He expressed concern about profiteering tendencies, noting that some individuals take advantage of announcements of increases to raise prices when it is unjustified.
"I am glad that the Domestic Trade and Consumer Affairs Ministry made an announcement yesterday.
"They will go out and enforce prices where they should be and find people who are not observing the right practices from a business point of view," he told reporters.
He highlighted that Malaysians can also contribute by pointing out instances where they perceive prices have risen, which are not in line with the increases in the service tax.