FMM SAYS M'SIA NOT READY FOR GST, SUGGESTS RETAIL SALES TAX

KUALA LUMPUR, March 10 (Bernama) -- The Federation of Malaysian
Manufacturers (FMM) today suggested that the government consider a Retail Sales
Tax (RST) as Malaysia was not ready for the Goods and Services Tax (GST).

Chairman of the Task Force on GST Lee Ow Kim recommended that the GST
be deferred until Malaysia was ready when average income was higher and the
income disparity was smaller.

The GST is supposed to replace the current Sales and Services Tax (SST)
by the middle of next year.

Lee said normally the GST was for more advanced and affluent countries where
the income disparity was not that big and most people were paying income tax.

"Hence, the government should consider the RST as an alternative which was
simpler, less costly for government and businesses to administer but generates
the same revenue to the government," he told a GST conference Tuesday.

-- BERNAMA