Essential items, services to be exempted from Malaysia's GST

MALAYSIA will implement the goods and services tax (GST) at 6 per cent, which will begin on April 1, 2015, said Prime Minister Najib Razak in his 2014 Budget presentation.

 

In his widely-anticipated Budget speech themed "Strengthening Economic Resilience, Accelerating Transformation and Fulfilling Promises" on Friday, Mr Najib said the GST will replace the sales and services tax of up to 16 per cent currently.

 

"The GST will not be imposed on essential items such as flour, rice and sugar, and it is among the lowest among Southeast Asian countries currently," he said in Parliament.

 

Public transportation such as bus and train fares will also be exempted.

 

He said after the GST is implemented, personal income tax will be reduced between one percentage points and three percentage points, while corporate tax will be reduced between one percentage points and two percentage points.

 

Currently, individuals pay up to 26 per cent, while corporates pay up to 25 per cent in taxes currently.

The government is also cutting subsidy by allocating RM39.41 billion (S$15.42 billion) on essential items such as cooking oil, flour and sugar this year, 15.6 per cent lower than the RM46.7 billion allocated last year.

 

Revenue for 2014 is expected to be RM4 billion higher at RM224.1 billion, while the government plans to spend RM264.2 billion on development programmes and administrative expenditure.

The economy is expected to grow between 4.5 per cent and 5 per cent this year, and between 5 per cent and 5.5 per cent in 2014.

 

According to the Economic Report released by the Finance Ministry on Friday, public debt in 2013 will continue to rise to RM541 billion or 54.8 per cent to gross domestic product from 53 per cent last year.

 

However, its budget deficit this year is lowered to 4 per cent, from 4.5 per cent last year, and said it will continue to lower to 3.5 per cent in 2014.

 

http://www.straitstimes.com/breaking-news/se-asia/story/essential-items-services-be-exempted-malaysias-gst-20131025

 

今起生效‧白糖34仙津貼取消

（吉隆坡25日訊）首相拿督斯里納吉宣佈，政府取消每公斤34仙的白糖津貼，明日起生效。

他說，目前有260萬名30歲以上的國民患有糖尿病，取消白糖津貼有助於減少糖尿病患者。

 

“如果不控制糖尿病，還會引發其他疾病，例如心臟病、腎衰竭、失明和需要截肢。”

 

他呼吁國民保持健康，飲食方面別太甜，笑容甜一點倒是無妨。

 

政府最近一次是於2012年12月1日宣佈白糖起價，白糖的零售價從每公斤2令吉30仙調漲至2令吉50仙。

 

 

確保真正需要族群受惠
分階段調整津貼架構

 

納吉指出，目前政府津貼最多的是燃油，佔總數的53%或248億令吉，政府合理化津貼的初步計劃已經於9月3日起減少燃油津貼每公升20仙。

 

他說，政府將分階段調整津貼的架構，確保真正需要的族群受惠，省下的津貼可以用在其他利惠人民的措施，例如以現金形式派發援助金，以及進行各項政府發展計劃。

 

他指出，政府在2013年已經耗資接近470億令吉津貼各項物品，包括燃油、食品、醫療、農業和漁業、水電、收費站、福利和教育。

 

“津貼最多的燃油讓各階層人士受惠，包括高收入者、商家和外國人，遭到不負責任人士濫用和走私，政府必須作出最佳和最能夠利惠人民的決定。”

 

他說，為了避免符合資格的人士成為漏網之魚，首相署協調單位將會成立一個完整的資料庫，整合e-Kasih、福利金和一馬援助金接受者的資料。

 

http://news.sinchew.com.my/topic/node/410391?tid=1135

 

 

Budget 2014: Concern over GST and removal of sugar subsidy

THE foremost concerns of Malaysians following the Budget 2014 are the rise in sugar prices following the removal of its subsidy and the implementation of the Goods and Services Tax (GST).

 

With many saying that they are already struggling with the high living costs, they expect to further tighten their belts.

 

Insurance agent Jason Tan, 24, said daily life was already a struggle, especially for those who were just starting out in their careers.

 

“Although the price rise of sugar is only 34 sen per kilo, shops are going to increase the prices of their drinks by at least 10 sen per glass. Other prices will go up as well and the pinch will be felt by us,” he said.

 

Tan said he was also concerned about the implementation of GST, adding that he did not think that the exemption or reduction of income tax would bring much benefit.

 

The GST, fixed at 6%, is scheduled to be implemented on April 1, 2015, – 17 months from now – and will replace both the sales and services taxes.

 

At the same time, both the individual income and corporate tax rates are to be reduced by between 1% and 3%.

 

Lecturer Sudhashini Nair said she hoped that proposals spelt out under the Budget 2014 would help the lower and middle income group.

 

“The costs of living is so high now that we cannot even think of having more than one child,” she said.

 

PhD student Nithiya Arumugam, who returned from Japan three years ago, said the removal of the sugar subsidy would affect her the most.

 

“When I came back home, I was shocked by how much the food prices have increased. This is just going to make things worse,” she said.

 

Approving the Government’s move to set aside funds to improve the public transportation system, Nithiya said currently, the main focus was only the city centre.

 

“I hope to see the system extended and also for an increase in efficiency,” she said.

 

Engineer S. Kulendran said he was sceptical about GST, claiming that although many countries were alre­ady applying the system, they had high per capita income.

 

“They have reliable public transportation systems and affordable raw resources but we do not have that,” he said.

 

“The GST will affect the spending of the middle class and with lower salary increments, the situation will be worse,” he said.

 

Aircraft engineer Nazir Maslan felt that the removal of the sugar subsidy would impact the lower and middle income the most.

 

Nazir said he was hoping to see a positive result from the implementation of GST, adding that the 6% was a “reasonable amount” and “one of the lowest”.

 

“The only thing is that in countries like Britain, they pay more taxes but they also get back more. For example, the public transportation there is so good that it is a hassle to own cars.

 

“But I only see that happening here in the next 10 years,” he said.

 

http://www.thestar.com.my/News/Nation/2013/10/26/Concern-over-GST-and-removal-of-sugar-subsidy.aspx