GST collection to be returned to people - Najib

Collections from the Goods and Services Tax (GST) will be returned to the people and its details tabled in the next Budget, said Prime Minister Datuk Seri Najib Razak.

Najib, who is also Finance Minister, said this way, the people would gain from the six per cent tax that was introduced on April 1 as a long-term measure for the good of the economy and people.

"We have to inform about additional revenue, how we are using it. We are collecting for the benefit of the people, we will return it to the people. These are short-term challenges that must be faced," he said at the Finance Ministry's monthly assembly here Tuesday.

The GST was implemented on April 1 at a rate of six per cent and replaces the Sales and Service Tax (SST) which was generally at 16 per cent.

Realising there were some grumblings from the people on the GST implementation, Najib said the authorities must monitor the situation by obtaining public feedback.

"The information is to see if their grumblings have any basis or was caused by certain quarters taking advantage (of the situation) by maintaining the sales prices with an additional six per cent even though the SST had been abolished.

"Actually when the SST is abolished and replaced by the GST, traders should reduce their prices and add six per cent. What happened is they maintain the prices and added another six per cent (GST)," said Najib.

He said the government would ask the relevant authorities, particularly the Domestic Trade, Cooperatives and Consumerism Ministry to launch comprehensive and ongoing enforcement.

The cabinet had also decided that profiteering related offences (excessive profiteering) needed to be brought to court as soon as possible.

Hence the prime minister hoped all parties would continue to understand GST as a more efficient and effective tax system that makes the country's fiscal financial foundation stronger.

Najib also cited the analogy on the need to take antibiotics instead of choosing an adverse populist path.

"We must take antibiotics until the end to allow our health to recover, we must have success and courage despite being beaten by the waves but the ship must head to its destination," he added.