GST is the future of Malaysia and right thing to do, says Idris Jala

Idris, who is also Minister in the Prime Minister Office added GST implementation is crucial for the country's economic growth.

"I know it's difficult to do but introducing GST is the right thing to do for the future of Malaysia.Idris said, at present there are 29 million Malaysians and prior to GST only 1.7 million people were taxed.

The income tax, said Idris would not be sustainable for the country in the long run. Idris also said that Singapore imposes a seven per cent GST but no exemptions or zero-rated goods are imposed.

"Malaysia is fortunate," he added.

In other parts of the world, the United Kingdom has a 20 per cent GST rate while a low-income country such as Tanzania imposes an 18 per cent rate.

In the long run, Malaysia will become an aging nation where people live longer, so many would retire.

Idris said when a large aging population is reached, the public health service will be hit with colossal impact and GST would ensure the impacts are mitigated. Also, by the year 2020, he said the number of people living in Kuala Lumpur and the Klang Valley would escalate from six million to 10 million.

"This is because people are converging into the city and if we don't build the necessary infrastructure to accommodate everyone, the city will be gridlocked.

"And how are we to afford building all these things for the rakyat? We cannot do it without raising the government's revenue," said Idris.

He said even though the Economic Transformation Program (ETP) is in place, the tax system needs to be broadened to ensure steady economic growth.