fomca logoJune 1, 2022 @ 5:25pm
KUALA LUMPUR: The Federation of Malaysian Consumers Association (Fomca) welcomed the move to reintroduce the goods and services tax (GST).

Its president Datuk Dr Marimuthu Nadason agrees the move will directly contribute to increasing the national income.

He told the New Straits Times today that the implementation of GST was effective when it was introduced in 2015.

"But then we scrapped that off and introduced sales and services tax (SST), which had somehow created loopholes for some people to avoid paying their tax reimbursement.

"So by introducing GST again, it would directly help the government, especially in terms of tax collection.

"We see it's as being the most economically developed countries have applied this move and it helps them to build their countries and their people.

"The concept here is that 'if you buy more, you pay more, hence people don't have to worry if they're not in the threshold," he said.

He declined to comment on whether now is the right time for the government to reintroduce GST.

"What I can say is that it will help the national economy, which can later will help to the people," he said.

Reuters quoting a Nikkei report on Tuesday said Prime Minister Datuk Seri Ismail Sabri Yaakob saying that the government was 'keen' on re-introduce GST.

He was reported as saying that the government would target a GST rate that stood in between affordable by the people and not too low to defeat its purpose.