KUALA LUMPUR, May 15 – Tan Sri Zeti Akhtar Aziz said there will be no turning back on the proposed abolishment of the Goods and Services Tax (GST) which came into effect on April 1, 2015.
“It’s (decision to abolish) is final and work is in progress towards the abolishment, ” said the former central bank governor who is also part of the five-member Council of Eminent Persons.
Two of the council members were at the Finance Ministry this morning to discuss the tax and other economic matters, including fiscal changes and subsidies. “So we know from the starting point that it has been decided, there’s no question about it.
“The issue is how it is going to be accomplished. Do we zerorise it? So, from six percent it becomes zero percent,” she told reporters after chairing a meeting with 180 fund managers here today.
Pakatan Harapan, which won the 14th General Election and formed the new Federal government, had made the abolishment of the GST part of its election manifesto. Zeti said all matters concerning economic changes would be carried out in a comprehensive and orderly manner.
“The ultimate objective is to put more purchasing power in the hands of the people, especially the lower and middle-income groups,” said the first female governor who held Bank Negara for 16 years until her retirement.
She said once a decision is made, it would be made known to the public. “We will announce what we are going to do, including the strategy, process, technology, system and get it approved in Parliament,” she said.
Zeti also stressed that she would not react to political matters and would only be involved in economic issues. “That’s what the people care about the most now, how they are going to be impacted and how businesses are going to be impacted. That’s the reason I came back,” she added. — Bernama