Promoting tourism is one of the objectives for the proposal to introduce goods and services tax (GST) to replace the current tax system, said GST Special Task Force Unit Customs Officer, Mohamad Sabri Saad.
He said tourists would be allowed to claim GST paid on purchases under the tourist refund scheme while in designated areas, including Labuan, Langkawi and Tioman, no GST would be imposed.
"The Malaysian GST model has considered the welfare of the citizens, especially the lower-income group, who will get zero-rating basic foodstuff, water and electricity with no GST on government services," he said at a seminar on the GST here today.
Mohd Sabri said group would also benefit from the proposed threshold, which excluded small business from GST net besides exempting public transport, health, education, toll highway, financial and residential property.
"The GST rate is going to be set at the relatively low rate to minimise the GST impact on prices and most of the zero-rated items will be lowered in terms of prices," he said.
Earlier, Sarawak Customs and Excise Deputy Director, Ahmad Jii, said a total of 160 countries had benefited from the GST as their exports would become more competitive.