Intellectual discourse on GST

Second from left: Chai, Loo, Prof Choong and Dr Mahmud with UTAR staff, students and members of the audience

To provide insights on the repercussions of GST from different perspectives, an Intellectual Discourse Forum on GST was organised by the Faculty of Business and Finance (FBF), Centre of Accounting, Banking and Finance at UTAR Perak Campus on 22 June 2015.

The speakers at the Forum were FBF Dean Prof Dr Choong Chee Keong who is also a scholar in Economics, Bobby Chai Boon Hui who is a lecturer from the Marketing Department, and Loo Thin Tuck who is a lecturer from the Department of Commerce and Accountancy. FBF Deputy Dean (R&D and Postgraduate Programmes) Dr Mahmud bin Hj Abd Wahab served as moderator of the Forum.

Dr Mahmud moderating the forum

Sharing his views on GST from the Malaysian economy’s point of view, Prof Choong discussed the global economic environment in the context of GST implementation and the challenges of implementation. Besides narrating the present global crude oil price and the Malaysian exchange rate scenario, he also explained why GST is implemented in Malaysia and its impact on the Malaysian economy. He also spoke on the 11^th Malaysian Plan on the economic front and the projections for 2030 in respect of per capita GDP in the ASEAN countries.

Prof Choong sharing his views on the implementation of GST

Bobby Chai, who has more than 30 years of experience in the banking and financial services industry, shared his views on GST from the Malaysian Business House perspective. He explained that most ASEAN countries have already implemented GST. He also clarified that small businesses are excluded from registration under GST, and that SME companies’ business tax would be reduced from 20% to 19% from 2016.

He added, “The government will ensure that GST refund is made within the stipulated time frame. Businesses will play the role of tax collector of GST, since ultimately the GST will be collected by businesses and remitted to the Customs Department after setting off the correct amount of input tax credit.”

Chai explaining GST from the business perspective

Loo, a professional accountant as well as tax and GST consultant, shared his views on GST from the Malaysian consumers’ perspective. He narrated the possible increase of the Consumer Price Index in view of the GST implementation.

“Buyers might have hoarded some household items to avoid paying GST,” explained Loo. He added that some food items are rated with zero GST and basic amenities are exempted from GST. Therefore, production cost will be lower as GST paid on input is claimable by the businesses. He also described the measures taken by the government to curb price rises such as the anti-profiteering Act.

Loo expressing his views on GST from the consumers’ perspective

Dr Mahmud, who has 18 years of experience in the Malaysian banking industry, requested Prof Choong to elaborate the steps that the government can take to ease the burden of the people in terms of fiscal and monetary policy. Prof Choong detailed the various steps that can be taken.

An interactive Q&A session was held in which the speakers addressed questions from members of the audience. In response to a question by Ching Suet Ling on how to arrest inflation in the context of GST, Prof Choong said, “With or without GST, inflation is bound to occur in view of some external forces like oil price. The main process to curb inflation is to increase the productivity of business houses which will help to reduce the cost of production.”

In response to another question by Dr Wong Kee Luen on how GST will help to crack down tax evaders, Loo Thin Tuck replied, “The government is going to link the Customs and Inland Revenue organisations’ database by which it will ensure that the business houses declare their sales correctly.”