KUALA LUMPUR: The government will implement measures to cushion low-income earners from the impact of the Goods and Services Tax ( GST ) , scheduled for implementation on April 1.
Finance Ministry secretary- general Tan Sri Dr Mohd Irwan Serigar Abdullah said the measures were still being deliberated but added that the targeted group would not be adversely affected by the new taxation system that would replace the Sales and Services Tax.
“We will help those that need help and we are discussing the mechanisms and measures to do this,” he said after attending the post-2015 Budget dialogue at the Securities Commission in Bukit Kiara here yesterday.
On the 2015 Budget, Irwan said it was an inclusive bud ge t that did not discriminate against any segment of society.
“The budget is not just about capital economy, but also about the people’s economy.
“If there is growth, it will be shared with and distributed to the people.”
“Our target is to achieve a balanced budget by 2020. The distribution of the 1Malaysia People’s Aid (BR1M) will also be refined,” he said, adding that the BR1M distribution mechanism was being fine-tuned.
Yesterday, the government unveiled more than 900 items that are zero-rated and exempted from GST, and gazetted them in the Consumer Price Index.
Among the services and goods in the list are education, transportation, childcare, healthcare, tolled highways, as well as essential food items, such as rice, flour, noodles, coffee, salt, sugar, coconut and vegetables.
Royal Malaysian Customs Department director-general Datuk Seri Khazali Ahmad said among the items high on the list were essential items.
“Low-income earners should continue living as normal as the implementation of the GST will not severely impact them.
“The items are a reflection of the government’s efforts to ensure that the people will not be affected by the hike in the prices of goods and services.”
On zero-rated and exempted items, Khazali said a mechanism would be set in place to manage claims from businesses for tax refunds under the new taxation system.
“Businesses producing zero-rated items can claim reimbursements from the department for the tax imposed along the supply chain of production of their goods or services.
“Online claims will be processed within 14 days and manual claims within 30 days.” Additional reporting by Sharanpal Singh Randhawa
For the full list, visit:
www.federalgazette.agc.gov.my