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Malaysia govt doesn’t understand how GST works, says Dr Mahathir

GEORGE TOWN — Malaysia’s government needs to rethink the implementation of its Goods and Services Tax (GST) because it doesn’t understand how it works, Dr Mahathir Mohamad said today (April 30).

Dr Mahathir Mohamad, Malaysia's former prime minister. Bloomberg file photo

Dr Mahathir Mohamad, Malaysia's former prime minister. Bloomberg file photo

GEORGE TOWN — Malaysia’s government needs to rethink the implementation of its Goods and Services Tax (GST) because it doesn’t understand how it works, Dr Mahathir Mohamad said today (April 30).

Continuing his attacks against the Barisan Nasional (BN) government, the former prime minister claimed that even the officers in charge of implementing GST had no clue as to how the taxation system works.

“When you ask them for details, they don’t know how to explain and apparently, the government doesn’t understand the impact of GST on the people,” he said in a press conference after speaking in a forum titled “Cakna Ilmu” at Universiti Sains Malaysia here this morning.

He said Malaysians are very angry and very annoyed with GST because it impacts them directly unlike the 1Malaysia Development Berhad (1MDB) scandal.

“When the government introduces something that the government itself doesn’t understand how to implement or what the impact is, they need rethink it,” he said.

The implementation of the consumption tax has come under fire by federal opposition leaders but Dr Mahathir has also spoken out against it.

He had warned the BN government that if it insists on implementing the tax which causes a rise in prices, it would lose the support of voters in the next general election.

The 6 per cent tax was only implemented on April 1 and the federal government had launched a drive to explain to people on the benefits of the tax.

Deputy finance minister Ahmad Maslan had been trying to explain the benefits of GST as opposed to the previous Sales and Services Tax (SST) system and that it has also reduced income tax rates for individuals and corporations. THE MALAY MAIL ONLINE

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