Hit Counter: 0

GST Implementation Will Increase Nation's Economic Competitiveness: Customs

[ 03-06-2014 ]
GST Implementation Will Increase Nation's Economic Competitiveness: Customs
KUALA LUMPUR, May 28 (Bernama) -- The implementation of the goods and services tax (GST) will increase the country's economic competitiveness with additional export revenue.

According to a study undertaken by the Royal Malaysian Customs Department, its Director of Internal Tax, Subromaniam Tholasy, said the GST implementation was expected to increase export revenue by 0.5 per cent in the first year of implementation.

He said the export market would be more competitive with the implementation of the new tax as exporters would get rebates on taxes paid on exports.

"That's why in GST, every tax included in the export price could be identified and would be refunded to exporters," he said.

Subromaniam was met by reporters after a public forum at Universiti Malaya (UM) titled "Why GST?" today.

The forum was organised for the first time by UM's International Institute of Public Policy and Management.

"Exports through third parties will be more competitive...Doesn't matter who makes the exports. Whoever exports our products will get rebates on the taxes they have paid on the products.

"Indirectly, (this) will further increase the country's competitiveness in terms of exports," said Subromaniam.

Asked on the reduction in prices with the GST implementation, he said, "It depends on the type of goods and margin of the products. If the margin is not much, then the percentage can be quite significant.

"There will be reduction but there will not be much," he said.