Opening the World Halal Summit today, Prime Minister Datuk Seri Najib Razak said with the establishment of the Asean Economic Community by year end, there was no reason why Asean should not become a major halal trading hub that serves both to home markets and those around the world.
“Malaysia is happy to share our experience and expertise in halal with our friends and neighbours. Malaysia’s involvement in promoting the growth of the halal industry goes back decades,” he told the crowd at the KL Convention Centre here.
Najib said necessary policy framework, institutional support and infrastructure facilities for the halal industry were already in place, stating that the government is now entering the final phase of the Halal Industry Master Plan.
He also said Malaysia’s new Goods and Services Tax (GST), which comes into force today, is a key part of the biggest series of tax reforms in the history of the country.
“The aim is to make the taxation system more efficient, effective, transparent and business friendly so that it can contribute to ensuring that Malaysia reaches high income status by 2020.
“Our GST exempts many goods and services, such as water and basic foodstuff. This is good news for the halal industry, since most ingredients – fish, meat, poultry, vegetables and the like – will incur zero GST,” he said.
He also said no GST applied on exported goods and service where Malaysian firms will benefit from a lower cost of doing business by recovering any input taxes.
Source: New Straits Times