The Ministry of Finance Malaysia announced its latest news on October 13, 2010 that the implementation of Goods and Services Tax (GST) has been postponed. The press release is short and sweet - contains only 3 paragraphs.
The postponement of GST implementation is the second time that I know of. The first time was announced in year 2006 (the GST was then supposed to be implemented on Jan 1, 2007).
There is no indication when the GST will be revived. This announcement is just 2 days short of the tabling of the 2011 Budget on October 15, 2010.
The only idication that the GST may be brought back in the (immediate) future is the 2nd paragraph that says :
"This (the postponement) is to enable the government to engage inclusively with all segments of rakyat pertaining to the GST. The Government will take into account the interest and welfare of the society to ensure the implementation of GST is well received."
The 3rd paragraph reads:
"Notwithstanding the postponement, the Government recognises the importance of GST in ensuring a strong and sustainable fiscal position to support the long term economic growth"
The GST was scheduled to be implemented in middle of 2011.
My one sen worth
Most countries take 4-5 years to prepare for GST implementation. Malaysia could have taken the time from the first postponement in 2006 to undertake such a study. Hopefully, this time Malaysia will take the time from today to conduct the required studies, so that when (and if) the GST is announced again, there will not be any flip-flop decisions.
Read the press release in its original form here
