Goods and Services Tax Bill 2014 passed

KUALA LUMPUR: The Dewan Rakyat passed the Goods and Services Tax (GST) Bill 2014 on Monday.

The bill was passed through a head count twice with the opposition giving only 81 votes and the government, 118 votes in the first round. 

In the second voting, the opposition maintained with 81 votes while the government gave 119 votes.

Earlier, when winding up the debate on the bill, Deputy Finance Minister Datuk Ahmad Maslan said the GST would have positive implications on the value of exports and Gross Domestic Product.

"Exports will rise by 0.5 per cent as exported goods will be cheaper and more competitive and the GDP on the whole will rise by 0.3 per cent," he said.

Ahmad said the GST structure in Malaysia encompassed exemptions on various goods and services to meet the needs of the people. 

Compared to Singapore, the implementation of GST was imposed on all goods and services and exemptions were only given to financial services and residential houses, he said.

"The GST rate of six per cent set by the government is consistent with the current economic situation after taking into consideration several factors including reduction of personal tax and corporate tax and the cash financial assistance."

Besides that, he said, the government would also consider the proposal of not using the term 'service charge' for services in hotels and restaurants as consumers might be confused between service tax imposed by the government and the operators.

Last October, when tabling the 2014 Budget in Parliament, Prime Minister Datuk Seri Najib Tun Razak announced the implementation of GST effective from April 1, 2015 at six per cent to replace the sales and service tax at a total of 16 per cent.

Bernama