SIBU: Sarawak Public Health, Housing, and Local Government Deputy Minister Datuk Michael Tiang Ming Tee, has called on the Federal Government to reconsider the implementation of the Goods and Services Tax (GST), the Sarawak Public Communications Unit reported.
During a lecture titled "Service Tax and Its Changes" at the Wei Kuok Hall, co-hosted by the Methodist Pilley Institute (MPI) and the Merdeka/Meritam Village Development and Security Committee, Tiang highlighted the World Bank's economic insights stating that over 160 countries have adopted the GST system, contributing to about 30 per cent of their annual revenue.
Tiang said that contrasting this with Malaysia's Sales and Service Tax (SST), the GST would act as a more holistic and comprehensive option for the local economic structure without burdening the citizens.
He suggests a lower GST rate of three or four per cent compared to the previous six per cent to benefit businesses and increase tax revenue for public welfare and protection.
Addressing the recent increase in the SST rate from six to eight per cent in March, Tiang acknowledged it as a new challenge for the people.
He emphasised the crucial role of taxes in a country's economy and expressed hope that this increase would strengthen Malaysia's financial position.
Additionally, Tiang urged the Federal Government to focus on strategies to bolster the national economy, especially in the wake of the Covid-19 pandemic's economic impact over the past three years.
He highlighted the need for Malaysia to attract more foreign investments as part of its recovery and growth strategy in the face of new economic challenges.