Tuesday, May 21, 2013

lower percentage of GST for Sabah and Sarawak

KOTA KINABALU: Implementing the Goods and Services Tax (GST) is only fair under ‘one country one price’ situation, or else people in Sabah will end up paying more than our counterparts in Peninsular Malaysia due to the higher cost of goods here.

Federation of Sabah Manufacturers Association (FSM) president Datuk Seri Panglima Wong Khen Thau suggested the government impose a lower percentage of GST for Sabah and Sarawak if they decided to implement the proposal.

Wong pointed out that the goods in Sabah were 20 to 30 per cent more expensive than the peninsula, thus the seven per cent GST paid would certainly be higher than our West Malaysian counterparts.

Furthermore, people in the Interior will suffer more as the goods there were more expensive, he said when contacted yesterday.

If the government really wants to implement the GST, Wong suggested the government impose seven per cent in Kuala Lumpur, four to five per cent in Sabah and probably three percent in the Interior.

He said implementing GST of seven per cent would rake in an additional income of up to RM27 billion for the government, as stated by Minister in the Prime Minister’s Department Datuk Seri Idris Jala.

He said it was implemented in most developed countries.

“But Malaysia is a third world country, it will only be fair if we have ‘one country one price’, like Singapore and Australia.”

In this respect, Wong pointed out that the government has to balance the price differentials between Peninsular Malaysia, Sabah and the rural areas. He said it was a good policy so that people could not evade tax but it had to be fair to everyone.

Whilst the GST would affect consumers, Wong said it would indirectly be good for manufacturers or some in the business community as manufacturers no longer had to pay sales tax.

Wong added that it was not known yet how the government would implement the GST or whether there would be differential in percentage. However, FSM had submitted a memo to the government some time ago highlighting the issues affecting Sabah as well as suggesting recommendations.


  1. This is such a good move from the goverment. Sabahans has been paying more on the same goods as in peninsular since forever. If this happens in the future, it will ease the burden of living cost for us sabahans


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