Kedah government suggests GST rate be reduced to 3 percent

The Kedah government prefers that the Goods and Services Tax (GST) rate be reduced to three percent. The rate of the new tax regime which was introduced in April this year is six per cent.

Kedah Menteri Besar Datuk Seri Mukhriz Mahathir who mooted this, said the three per cent should be maintained for a few years until the people adjust to the new tax regime.

"I also suggest to the federal government that revenue from the GST be distributed to poor states like Kedah. This is not strange because it is done in Australia," he said when winding up debate on the motion of thanks for the royal address at the state assembly sitting here on Wednesday.

Mukhriz said he hoped his suggestions would be given due consideration to help reduce the burden of the people.

On integrity issues, Mukhriz said Kedah was the first state to adopt the integrity pledge called for by the National Integrity Department and that he was personally monitoring issues on integrity involving state executive councillors to ensure they lived within their means.