KUALA LUMPUR: The private should be given at least an 18-month grace period from the passing of Goods and Services Tax (GST) Bill to get ready, says Guinness Anchor Bhd managing director Charles Ireland.
The Bill was tabled in Parliament last year. The second reading, however, was postponed to get feedback from the public and stakeholders.
Ireland said the grace period was important to accommodate the change in the system and process and move seamlessly in the implementation of the GST.
"At GAB, although we are 50 per cent ready we will not pursue this further until a definite date is set.
"From a business point of view, I would prefer to allocate resources to other areas of the busines unless the government can confirm the implementation date," he told Bernama in an interview recently.
He said training for the staff was also an issue that should be looked into.
"There is no point training the staff to be GST-ready as they may not be around when the time comes due to various reasons," he said.
On whether the GST would bring fiscal and economic benefits, he said the tax would be an effective and efficient tool to help collection in a progressive manner.
"The structure that requires those with higher spending power to pay more taxes and those not able to, to pay less, will result in a healthy government finance.
"This is essential to facilitate the modernisation of the country as we progress towards 2020," he said.
Australia is one of the reference countries that Malaysia is studying in the development and design of its GST.
In Australia, excise duty on beer and spirits is based on volume, which means the alcohol content of the drink.
Ireland said most academics considered this taxation on alcohol beverages to be world's best practice.
"The Australian government reduced the excise rate on alcohol to ensure that the overall tax burden after the introduction of GST will be stable (when compared to the overall tax burden prior to GST).
"Therefore, price stability is important to maintain economic growth and the stability of the malt liquor market," he said, adding that he hoped the government would maintain the current excise tax structure and rates.
He said the government could look at global best practices in excise tax structure to assist in revenue tax collection to maintain the attractiveness of Malaysia as an international tourist and business destination.
Going forward, he said, to tackle smuggling and counterfeiting of excisable goods, it was vital for the government to introduce border enforcement for shipments coming in and conduct regular retail enforcement.
In 2009, the industry paid RM1.46 billion in taxes. ' Bernama
The Bill was tabled in Parliament last year. The second reading, however, was postponed to get feedback from the public and stakeholders.
Ireland said the grace period was important to accommodate the change in the system and process and move seamlessly in the implementation of the GST.
"At GAB, although we are 50 per cent ready we will not pursue this further until a definite date is set.
"From a business point of view, I would prefer to allocate resources to other areas of the busines unless the government can confirm the implementation date," he told Bernama in an interview recently.
He said training for the staff was also an issue that should be looked into.
"There is no point training the staff to be GST-ready as they may not be around when the time comes due to various reasons," he said.
On whether the GST would bring fiscal and economic benefits, he said the tax would be an effective and efficient tool to help collection in a progressive manner.
"The structure that requires those with higher spending power to pay more taxes and those not able to, to pay less, will result in a healthy government finance.
"This is essential to facilitate the modernisation of the country as we progress towards 2020," he said.
Australia is one of the reference countries that Malaysia is studying in the development and design of its GST.
In Australia, excise duty on beer and spirits is based on volume, which means the alcohol content of the drink.
Ireland said most academics considered this taxation on alcohol beverages to be world's best practice.
"The Australian government reduced the excise rate on alcohol to ensure that the overall tax burden after the introduction of GST will be stable (when compared to the overall tax burden prior to GST).
"Therefore, price stability is important to maintain economic growth and the stability of the malt liquor market," he said, adding that he hoped the government would maintain the current excise tax structure and rates.
He said the government could look at global best practices in excise tax structure to assist in revenue tax collection to maintain the attractiveness of Malaysia as an international tourist and business destination.
Going forward, he said, to tackle smuggling and counterfeiting of excisable goods, it was vital for the government to introduce border enforcement for shipments coming in and conduct regular retail enforcement.
In 2009, the industry paid RM1.46 billion in taxes. ' Bernama
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