The Goods and Services Tax (GST) Bill was passed in Dewan Rakyat, the lower house of Parliament, yesterday, with 119 vote for and 81 against.
After two days of debate, the bill went through the committee stage readin with no amendments, meaning the GST will start at a flat rate of 6% beginning April 1 next year.
Once introduced, the GST is expected to help Prime Minister Datuk Seri Najib Tun Razak’s administration curb rising spending, and tamp down the government’s ballooning budget deficit.
Pakatan Rakyat (PR) MPs opted to not attend the committee stage of the proceedings as they disagreed with the Bill on principle, according to Klang MP Charles Santiago.
House Speaker Tan Sri Pandikar Amin Mulia called for a vote after Deputy Finance Minister Datuk Ahmad Maslan completed winding up after intense debates.
In his winding up speech, Deputy Finance Minister Datuk Ahmad Maslan insisted that the implementation of the GST is to replace the “weaker” Sales and Service Tax (SST).
“Not to replace the income from petroleum resources and the income tax but to diversify the nation’s income,” he defended.
“Consumers will know which products or services are taxed and they will be able to plan their expenses wisely,” said the minister, stressing that the much opposed tax will help government finances and restructure the current tax system.
As the votes were being counted, PR MPs unfurled black anti-GST posters with the slogan “Tolak GST” (“Reject the GST”).
Earlier, Datuk Seri Abdul Hadi Awang (PAS-Marang) wanted to know if the consumption tax was simply a way to broaden the country’s tax base, mimicking systems is wealthier nations.
“I am concerned that this advice is coming from people at the International Monetary Fund and financial scoundrels, including those in our country,” said Abdul Hadi, who is also the Islamist party’s president.
Ahmad Maslan was unable to say if the GST will stay at the tabed rate of 6% permanently.
“For now it will be (at the rate),” Ahmad said.
