Conduct GST survey on all races, suggests academician

The government should be continually reviewing what needs to be excluded from the Goods and Services Tax (GST) until its implementation next year, according to an academician.

“We need to have a race-based study, including people from Sabah, Sarawak, Melaka, Chinese, Indian… everybody. Because basic food for each community differs,” Prof Dr Faridah Hassan from the UiTM Marketing and Strategic Management division told Astro AWANI.

Faridah, who was one of the panelists in a forum organized by Sinar Harian “GST: Siapa untung siapa rugi” here on Wednesday, said that more than one survey needs to be done to get feedback from the people.

“The people should be the one who decides what should be taxed and what not. That needs to be ongoing right until the dateline to implement,” she said.

Faridah today also said that the GST was a long overdue policy that can be regarded also as an “awakening call” for people to spend more wisely.

“This is for us not to waste on electric bills and so on. Otherwise, we would be spending more without thinking.

“It has been postponed from 2005 and so on, if we don’t introduce this now, then when? We need to read and understand how it is beneficial for us.”

She gave the example of Australia, when it was introduced in 2006, the people were afraid.

“For the first two years, prices increased drastically, people hoarded items, but it was proven that in 2008, when the economy stabilised it was good for the economy. The real estate industry boomed”.

In Malaysia, she said, it was estimated that about 10% of items will increase in prices, and 50% will remain, while 40% will be cheaper.

GST is set to be implemented in April 1, 2015, to replace the existing Sales and Services Tax (SST). Areas on food, health and education are largely exempt from GST.