KUALA LUMPUR: Two years after its “controversial” implementation, the Goods and Services Tax (GST) has proven to be a success, Second Finance Minister Datuk Seri Johari Abdul Ghani said today.
He said the GST has shown itself to be an efficient taxation system that has also helped curtail the black economy (also called the ‘shadow economy’), which involves business dealings that are untraceable, and therefore untaxable.
Johari said it means that those who have been evading paying taxes are no longer able to do so with ease.
"No one likes to pay taxes, but taxes collected by the government are channelled to the people,” he said.
Johari added that another positive result of the GST implementation has been the balancing of the government's budget, which was affected by the drop in oil prices.
He also pointed out that of the 173 countries which have implemented GST, none has reverted to its previous taxation system.
Johari, who is also Titiwangsa MP, was speaking to reporters during an anti-cigarette smoking campaign in Kampung Pandan here.