'SST collection will surpass GST in future’

COLLECTION from the Sales and sponse to a question by Datuk Seri government, had burdened the Services Tax (SST) will surpass the Ismail Mohamed Said (Barisan people and taxpayers, particular­ amount collected from the abol­ Nasional-Kuala Krau) on the ex­ ly due to delays in refunds. ished Goods and Services Tax pected shortfall under SST and On proposals to reintroduce (GST) in the next few years, the policies and plans to address this. GST, he said a thorough study was told. Dr Mahathir said GST collection was needed, particularly on the Prime Minister Tun Dr Ma­ was higher as consumers and impact of rising prices on con­ hathir Mohamad said while the businesses were charged multiple sumers, inflation and additional government expected a shortfall times, which caused issues. costs of compliance on business­ of more than RM20 billion this “In comparison, SST had been es due to the need to change com­ year under SST, which was al­ implemented for so many years puter systems and retrain staff, most half of GST’s annual col­ (before GST was introduced in apart from filing for tax refunds. lection of RM44 billion, he as­ 2015) and there were never any He said changes to the tax sys­ sured that this was normal for problems. That was why we de­ tem should not be made fre­ any newly introduced taxes. cided to revert to SST. quently as it would impact in­ ''This (shortfall) was not due to “Thank you for the offer, but the vestors’ confidence. mistakes in the implementation country will be destroyed if we “The government is improving of SST. When new taxes are im­ accept you as a consultant,” he the SST system.” plemented, collection from those said in response to an offer for free Deputy Finance Minister Datuk taxes will see a shortfall in the consultation from former deputy had said SST beginning. This is due to adjust­ finance minister Datuk Seri Ah­ was projected to collect RM22 bil­ ments that need to be made. mad Maslan (BN-Pontian) should lion this year, half of what GST “I’m confident that in a few the government revert to GST. collected every year, prompting years, collection from SST will be Dr Mahathir said GST, which calls for the government to re­ higher than GST,'' he said in re­ was introduced by the former BN view the new tax system.