Majority of rakyat accept, understand GST implementation

A majority of the rakyat have been able to accept and understand the government's efforts to implement the Goods and Services Tax (GST) effective April 1 next year.

Deputy Finance Minister Datuk Ahmad Maslan said the majority of the rakyat were aware that the GST was necessary to strengthen the economy and development of the country.

He said the people were concerned with the issue of the rise in the price of goods, however, the government had taken several initiatives to reduce the impact of the GST on the price of goods and cost of living.

"The government is undertaking the economic transformation of the country and the results will be returned to the rakyat. The GST implementation is not only done by the government but also by the business community," he said in reply to a question from Datuk Sapawai Ahmad Wasali (BN-Sipatang) in the Dewan Rakyat here today.

In fact, Ahmad said the timing for the implementation of the GST on April 1, 2015, was suitable considering the stability of the economy while inflation is under control at 3.3 per cent.

He said 76,315 companies had registered for the GST as of yesterday.

It was expected that some 124,500 companies would register, exceeding the target of 123,000 companies by the Royal Malaysian Customs Department, he added.

On preparations for the GST, he said the Customs Department had issued the GST Guidelines namely 45 industry guidelines and 16 specific guidelines for the industry.

In addition, the Customs Department is in the process of hiring 677 new staff in addition to the existing 1,227 employees for the GST implementation.

Ahmad also said the MyGST computerisation system development had been completed to facilitate the GST implementation and it is now being tested to avoid any problems during its implementation.

From April 1 next year, the GST at a rate of six per cent will replace the current Sales and Service Tax, which is at 10 per cent and six per cent respectively.