Gerakan is glad that the controversial goods and services tax (GST) has been put off, saying it is a good move as the timing of the introduction of GST is critical in ensuring the smooth implementation.

Gerakan deputy secretary-general Liang Teck Meng said it was important that the people should be adequately educated and prepared for GST, so that GST would not become an issue for the opposition to attack the government.

“We congratulate the government for taking into account the welfare and interests of the people as we strongly feel that the people must be properly briefed of the need and importance of GST to the overall Malaysian economic well-being, before it is implemented,” he said in a statement.

Liang, who is also Member of Parliament for Simpang Renggam, said Gerakan was among concerned vocal groups and individuals who had expressly asked the government to first convince and win over the people’s support before introducing the GST.

“In fact, Gerakan had forwarded views on the GST bill in a memorandum submitted to Prime Minister-cum-Finance Minister Datuk Seri Najib Tun Razak. One of our proposals was to call for a more simplified, efficient and transparent business-friendly tax collection mechanism,” he said.

Liang said the government should also exempt tax on essentials such as basic necessities, which should include sugar, flour, petrol, cooking oil and other price-controlled items.

“Like Canada, housing rent and medical services are two items the government should consider for exemption for the good of the people,” he added.

While acknowledging the need and rationale to introduce GST, Gerakan felt that the government should look into the timing of the official introduction of the GST.

Liang said if the timing was not right, the GST could have serious repercussions on the nation’s economy.

The GST is a consumption tax to be levied on transactions at all stages of production of goods and services but ultimately paid by the end consumer.

The Finance Ministry said in a statement that the GST was deferred to enable the government to engage inclusively all segments of the people on the imposition of the GST.

The government had earlier delayed the introduction of the tax in March this year, citing the need to engage the public for feedback.

The goods and services tax would help widen Malaysia’s narrow tax base which largely relies on proceeds from oil revenues from state oil company Petronas.