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Posts tagged ‘GST’

Health Ministry: Health Services Will Be GST-Exempt

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KUALA LUMPUR
: Health Minister Datuk Seri Dr S. Subramaniam admitted that there may, in fact, be an increase in healthcare costs after the implementation of the Goods and Services Tax (GST).

He, however, assured that the Government would not allow the hike to be “substantial” and would continue to find ways to minimise costs by providing highly-subsidised healthcare for the rakyat.

“The Government is committed to ensuring that there would be no substantial increases in healthcare costs even after GST is implemented,” Subramaniam said in an e-mail statement.

He was responding to DAP publicity chief Tony Pua’s comments that the health minister was “either ignorant or lying” to claim that healthcare costs will not be impacted by the GST.

The Petaling Jaya Utara MP had claimed that a price increase over healthcare costs was imminent and the only question was “by how much.”

Pua’s attacks came following media reports quoting Subramaniam as saying that healthcare costs would not be impacted when the GST is implemented in 2015.

Clarifying his statement made over the weekend, Subramaniam said he had told the media that health services were generally GST-exempt and the government would ensure prices would stay affordable.

“Unfortunately, my reply did not appear in full in many of the Press releases, thus giving rise to the wrong impression resulting in Pua’s statement,” he said.

Explaining further, he said the Government is very much aware of the need to ensure the continuation of providing affordable healthcare, particularly for the poor, once GST is implemented.

“Towards this noble objective, the Government has declared that healthcare services provided by the Government will not be subjected to GST.”

The Government has declared health services as GST- exempt, whereby all services which are defined as health services by the Health Ministry will be GST- exempt.

Subramaniam reiterated that the ministry would have continuing discussions and engagement with the Finance Ministry “to look at the entire spectrum of health services to minimise the effects of GST in increasing healthcare cost.”

“Rest assured, the Health Ministry will continue to play a proactive role in minimising the effects of GST on essential health services to ensure that all Malaysians, particularly those in the low-income group, will continue to have access to affordable healthcare.”

Govt now raising awareness of GST, says Ahmad Maslan

KUCHING: The much talked about Goods and Services Tax (GST) will only be implemented next year, said Deputy Finance Minister Datuk Ahmad Maslan.

“I don’t see it being possible this year,” Ahmad told reporters here on Monday. “Next year (is) more likely. We’ll have to wait for the Budget (2014) to be tabled in October.

“I think many announcements will be made then,” he told reporters at an awards ceremony for

Royal Malaysian Customs Department here.

Ahmad said while he was aware of a timeframe and method for implementation, he declined to be specific, saying “let the Finance Minister make the announcement”.

Pressed further, however, he indicated GST would be implemented.

“Yes, the Opposition is against it. But that would be like taking a step back (for a developing economy).

“The GST has been studied for many years. It has gone through a thorough review. Analysts and

economists agree it is a fair and effective manner of public revenue collection. For one, it will help plug the leakage of the black or shadow economy.”

Ahmad said the Government was working on raising awareness on the GST.

For instance, he said the Government wanted to reassure the public that daily necessities like “rice, sugar, vegetables and others” would be exempted from GST.

“Also it is not correct to say GST is an add-on, since Malaysians are already used to paying Sales and Services Tax, which the GST will replace, not add on.”

Among ASEAN countries, only Malaysia, Brunei and Myanmar were without the GST mechanism. Brunei, Ahmad said, is a welfare state, abundant in natural resources and with a small population.

“As for Myanmar, well, we all know the country has not reached that point in developing their economy yet. Around the world, 160 countries have GST. The GST is practised by the majority of the countries in the world.”

GST is a consumption tax, he said, adding high spenders would incur more taxes.

Asked if the GST would initially be introduced at the Sales and Services Tax rate, Ahmad was circumspect. He also did not reply to a question regarding the possibility of an increasing GST rate as a way to minimise its impact, as practised by other countries that implemented GST.

“We are studying the best model, but that is not to say we will follow the models of other countries. What we want is a fair and effective mechanism, which will not lead to out of control inflation,” Ahmad said.

He said GST would come under the purview of the Customs Department.

“The customs will play the most important role. People have had the wrong impression that Inland Revenue Department would collect GST, which will collect only personal and corporate taxes.”

via Govt now raising awareness of GST, says Ahmad Maslan – Nation | The Star Online.

GST only when everyone is ready

KUALA LUMPUR: The proposed Goods and Services Tax (GST) will only be implemented once all stakeholders are familiar with it, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said.

He said while the ministry was constantly in talks with the private sector, industry players and other relevant parties, the engagement process was not easy.

“Once all parties accept the GST, then we will introduce it,” he said after launching the National Tax Conference 2012: Taxation Chal­lenges in a Borderless Economy here.

Ahmad Husni said the Government had yet to decide when to table the Goods and Services Tax Bill 2009 for second reading in the House.

The Star

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