M GST IMPLEMENTATION WILL HELP GOVT TACKLE TAX REVENUE SLIDE, SAYS MSIAN P

KUALA LUMPUR, Dec 4 (Bernama) -- Implementation of the Goods and Services
Tax (GST) will help the Government tackle any drop in tax revenue in line with
depleting oil reserves, Malaysian Prime Minister Najib Tun Razak said Thursday
night.

He said though much of the country's income and growth hinged on oil
revenue, this source of revenue would slowly disappear as its resources are
finite.

" To proceed with the GST, we will do so in a structured and gentle manner.
The tax will be introduced in neutral fashion in tandem with current service
levels and sales tax so that it is not an added burden (to the people)," said
Najib, who is also Finance Minister, when speaking at the Federation of
Malaysian Manufacturers 41st annual dinner.

Najib said basic goods and essentials would be exempted from GST to ensure
the tax regime did not affect low-income earners.

The tax collection system would be analysed in detail to ensure efficient
collection, he said.

" Our goal is not to tax basic goods and services, but to broaden revenue
base so that we are not overly dependent on one sector to fuel the country's
future growth," he added.

-- BERNAMA