Datuk Seri Dr Wee Ka Siong
KUALA LUMPUR: The Goods and Services Tax (GST) can be reintroduced under a different name if the current administration does not wish to be associated with the previous government’s implementation of the tax, says Datuk Seri Dr Wee Ka Siong.
The MCA president said GST is a superior system compared with the outdated Sales and Service Tax (SST) currently in place.
“This is because GST has proven to be a much better and more effective system than the outdated SST,” he said, citing the Finance Ministry’s 2024 Fiscal Outlook Report, which acknowledged this.
He said the recent increase in SST from 6% to 8% has led to a cascading effect, burdening citizens with higher costs.
“MCA is urging the government to consider reintroducing GST, possibly under a different name, to distinguish it from past associations,” he added.
Dr Wee also said programmes such as the 1Malaysia People’s Aid (BR1M), previously labelled by some quarters as “dedak” (bribery) and “corruption”, was renamed Sumbangan Tunai Rahmah (STR) under the current government.
“The same goes for GST – it was a key weapon used to defeat the previous government, but now the current government is maintaining elements of the GST system, such as e-invoicing, which is recognised as an effective way to address the shadow economy and leakage issues.
“If you’re going to continue the previous government’s ideas and policies, why did you criticise and demonise them so strongly then?” said Dr Wee during the 71st annual general meeting at Wisma MCA here yesterday.
The shadow economy is a term used to define transactions of goods or services not reported to the government and therefore beyond the reach of tax collectors and regulators.
Dr Wee also said MCA will not remain passive in the face of shortcomings in governance.
“Despite being part of the backbenchers, the party will continue to hold the government accountable,” he added.
Dr Wee cited instances whereby intervention from the MCA prompted a re-evaluation of policies, such as the withdrawal of the tax on traditional Chinese medicine services and addressing the DuitNow QR transaction fees.
“When I raised public concerns and wanted Malaysia Airlines to be revived, I am accused of causing panic again. The same goes for the issue on (shortage of) eggs. Malaysia has large poultry farms, so why do we need to import from other countries?” he said.
Dr Wee said the effectiveness of Padu (the Central Database Hub) was also raised by MCA in its commitment to protect public interest.
Padu is a comprehensive data platform to ensure that subsidies reach those who truly need them.
He also stressed the MCA’s role as a representative of the people, engaging in constructive criticism and dialogue.
He added that the party, familiar with both governing and opposing roles, emphasises its ongoing ties with NGOs and community associations to better understand and address challenges faced by the public.
