Isnin, Disember 21, 2009

NOT THE RIGHT TIME FOR GST, SAYS FEDERATION

KOTA KINABALU: The implementation of the Goods and Services Tax (GST) will have Sabahans paying higher tax than people in Peninsular Malaysia due to the higher price of goods, Federation of Sabah Manufacturers (FSM) president Datuk Seri Panglima Wong Khen Thau said yesterday.

Most goods in Sabah are at least 20 per cent costlier.

"I do not think it is the right time for Malaysia to implement the GST until most consumer products are of equal price."

He said the tax would burden consumers, particularly rural people who had not been paying tax.

Consumers in Sabah will also be affected by the different pricing in different areas such as rural areas where prices are sometimes higher.

"The GST would also negatively affect business people as it involves more paperwork to be submitted to the government."

He said factories and wholesalers would also face problems because the GST would have to be included into their products when these were sold to retailers, resulting in an increase in price.

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