Guan Eng admits GST more transparent than SST

Lim Guan Eng today admitted that the goods and services tax (GST) which Pakatan Harapan (PH) strongly opposed in the past was more transparent than the sales and services tax (SST). 

(FMT) – But the finance minister said the two systems had a different impact on the public, with GST putting a greater burden on them.

“We cannot deny that in terms of transparency and efficiency, the GST trumps the SST. GST allows to collect more tax, but it has an impact on the people.

“While SST is not as efficient, it has less of an impact on the people and that is what we are focussed on,” he told the Dewan Rakyat.

Lim said this in response to Ahmad Maslan (BN-Pontian) who asked the minister which taxation system between the two was more transparent.

He said it could not be denied that while the implementation of SST would still have an impact on consumers, it still paled in comparison to the impact created by GST.

“Yes, GST managed to collect RM44 billion in revenue, while SST would be able to net RM21 billion, but the people suffer under the GST,” he said.

The PH government effectively scrapped GST last month when it zero-rated the tax, and is poised to implement SST in September.

The coalition had previously listed abolishing the GST – introduced by Najib Razak’s administration in 2015 – as one of its election promises ahead of the May 9 polls.

Critics of GST said the tax had led to inflation and higher prices.