It’s not surprising that the government has decided to put off the Goods and Services Tax (GST) for now.
While the NGOs might claim preliminary victory (they had planned a protest for Monday, when Parliament resumes) and some might think that the government has listened to the people’s concern, I believe it was the Federation of Malaysian Manufacturer’s objection that probably saved the day.
Five days ago on Tuesday, the FMM’s task force on GST recommended that the tax be deferred until Malaysia was ready (when average income was higher and income disparity lower).
We shouldn’t be too thankful to the FMM though. They very “kindly” suggested that the government consider a Retail Sales Tax instead of a GST – while the corporations continue to enjoy ever-lower tax rates. Gee, thanks!
