KUALA LUMPUR (Oct 13): Businesses should work with the government to help create a Malaysian middle class society in which at least 60% of the people earn enough to qualify them to pay income tax, said Deputy Minister of Investment, Trade and Industry Liew Chin Tong.
Liew noted that currently, only around 15% of Malaysians earn enough to qualify them to the threshold to pay income tax.
"Together, we should aim to create a society in which at least 60% Malaysians earn an income that qualify them to pay income taxes," he said in a statement issued after attending the annual general meeting of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) on Sunday.
Commenting on Prime Minister Datuk Seri Anwar Ibrahim's speech at the meeting, Liew said: "PM Anwar discussed several issues, including articulating a very clear view about Goods and Services Tax (GST). He acknowledged that GST is transparent, yet it is taxing everyone, rich and poor. He made it clear that GST is only going to be implemented after a few years, when the income level rises to an acceptable level."
Bernama quoted Anwar as saying in his speech that the government will only implement GST if the minimum income threshold is at RM3,000-RM4,000. Currently, the minimum monthly wage in Malaysia is RM1,500.
Liew, in his statement, said: "Guided by PM’s Madani spirit, I hope all sections of the society, businesses included, see the creation of a Malaysian middle class society as a national mission".
The deputy minister had previously stressed the need for Malaysia to create jobs that pay better by developing new sectors.
He said Malaysia must reduce the portion of unskilled labour and go for the automation and technological upgrade route, so that with less labour but more skilled workers, each worker is paid much higher for their work.