KUALA LUMPUR: The Malaysian Chinese Association (MCA) has recommended the re-implementation of the Goods and Services Tax (GST) in a bid to combat rising commodity prices and navigate uncertain economic conditions.
Its president Datuk Seri Dr Wee Ka Siong said that this comes in response to the government's recent decision to introduce a 10 per cent sales tax on low-value goods and raise the Sales and Service Tax (SST) rate.
"The implementation of this new tax, coupled with the increase in the sales and service tax (SST) rate from 6 to 8 per cent, will certainly burden the people, especially the poor B40.
"What's more, the decision to enforce mandatory e-invoicing on taxpayers with annual income or sales exceeding RM100 million is also seen to further complicate the situation," he stated in a video recording posted on his official social media platform.
Wee, who is also Ayer Hitam Member of Parliament, stressed that its main function is to overcome the problem of tax leakage.
"GST more widely can also increase the national income without introducing more new taxes that are more complicated and confusing as the government is doing today.
"The re-implementation of GST has been MCA's position since the beginning, even before the presentation of the 2024 Budget.
"Feedback received by MCA indicated that the business community called for the return of GST, albeit at a lower rate than the original 6 per cent set during its initial introduction," he added.
He emphasised that although the government decided to increase the SST rate instead of re-implementing GST, MCA still hopes that the government can implement this reform for the benefit of the people.
Looking back on his time in the Cabinet, Wee said there were precedents where some policies that did not benefit the people were withdrawn: "What is important is that the people of B40 can benefit," he said.
"MCA will continue to play its role as the voice of the people, especially the traders, M40 and B40.
"Even though MCA is part of the government, it will not stop MCA from criticising any policy that is seen as impractical and more burdensome to the people," he said.