"The government would like to announce the postponement of the implementation of the Goods and Services Tax (GST)," the finance ministry said in a statement.

The announcement, the latest in a series of delays in the scheme originally mooted in 2007, came ahead of the annual budget announcement Friday by Prime Minister Najib Razak, who is also finance minister.

Veteran opposition lawmaker Lim Kit Siang said the government's decision to delay the GST could mean it is preparing for elections next year.

"The opposition has organised a national campaign against GST. There is no justification for GST at a time when there is abuse and corruption," he told AFP.

"The government knows that if it goes ahead with the GST, public displeasure will boomerang through the air and whip the people who introduce it."

The GST would have helped Malaysia broaden its tax base away from the oil revenues which it currently depends on.

The finance ministry said the GST would ensure "a strong and sustainable fiscal position to support the long term economic growth," but assured that it will hear out the people's concerns prior to its implementation.

"The government will take into account the interest and welfare of the society to ensure the implementation of GST is well received," it said.


http://news.malaysia.msn.com/regional/article.aspx?cp-documentid=4394765