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GST Bill delay 'not due to pressure'
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Tuesday, 16 March 2010 19:48
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KUALA LUMPUR - The postponement in the second reading of the Goods and Services Tax (GST) Bill at the current Parliament session is intended for the government to take a deeper view of the people's feedback on the system and not because it is bowing to pressure from the Opposition.
"The government made the decision to postpone it to obtain more information from the people," Second Finance Ministe Ahmad Husni Hanadzlah said on Tuesday.
"This is not because of the Opposition, but because of the priority to the people. Giving people the priority, we want to hear their views on the matter," he said in reply to a question from Nasharudin Mat Isa (PAS-Bachok) on government policies at the Dewan Rakyat.
The GST Bill was tabled for first reading at the Parliament in December last year, and proposed for implementation in the third quarter of 2011, with the aim of expanding the tax base and reducing the country's deficit.
On the question of petrol subsidy, Husni said the government was looking into how to reduce the subsidy gradually while taking care of the welfare of the vulnerable group.
Petrol subsidy incentive
"This is important for the future of the country where subsidy needs to be used in the more productive sectors," he said.
The petrol subsidy incentive allocated by the government last year amounted to RM32.1 billion, making Malaysia the provider of the largest petrol subsidy in the world.
Nasharudin had also asked a question on the issue of supervision and control of petrol to non citizens.
Husni said foreign vehicles purchasing more than 20 litres of petrol within 50km radius of the border, would have the vehicles confiscated.
Meanwhile, he also called on enforcers to step up measures against the smuggling of petrol out of the country.
"The government takes a serious view of both issues," he added.- Bernama
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