Bring back GST to avoid wastage - Wee

KUALA LUMPUR: The government has been asked to reinstate the goods and services tax (GST) to avoid wastage and to analyse the implementation of the real property gains tax (RPGT) and capital gains tax (CGT) which will be implemented next year as there will be tax duplication.

Ayer Hitam Member of Parliament (MP) Datuk Seri Dr Wee Ka Siong said during the tabling of Budget 2024, Prime Minister Datuk Seri Anwar Ibrahim had announced that the government will implement the electronic invoicing system (e-invoice) to increase the national tax revenue.

However, Wee pointed out that e-invoice was a component of the GST that was previously enforced.

"Just bring back the GST, why do we want to spend more on e-invoices when e-invoices are a component of GST?

"Through GST, everything is more clear and transparent. The problem can be solved with GST," he said during the debate session on the Supply Bill 2024 in the Dewan Rakyat today.

Wee also claimed that the RPGT and the CGT overlap and need to be clarified.

"Taxation experts like Lloyd say there cannot be double taxation. So will there be an RPGT tax amendment in the near future?" he said.

Prime Minister Datuk Seri Anwar Ibrahim announced that a number of taxation reform measures will be implemented next year to expand the country's revenue base, and at the same time not burden the people.

Under Budget 2024, the government plans to increase the Sales and Services Tax (SST) to 8.0 per cent from 6.0 per cent, but this does not include services such as food and beverages and telecommunications.

Anwar said the government will also enforce the implementation of CGT on the disposal of unlisted shares by local companies, based on their net profit at a rate of 10 per cent beginning March 1, 2024

--BERNAMA