NATIONAL FATWA OF MALAYSIA GST
NATIONAL FATWA OF MALAYSIA: IMPLEMENTATION OF GOOD AND SERVICES TAX (GST)
Effective from 1 April 2015, the Government of Malaysia will impose the Goods and Services Tax (GST) in order to replace the existing Sales and Service Tax. GST is a consumption of goods and services tax which is based on multi-stage concept. GST will be imposed on all taxable supplies of goods and services other than those which had been categorised as zero rated supply.
The 106th Muzakarah Jawatankuasa Fatwa Majlis Kebangsaan which was held on 21 to 22 October 2014 had resolved that the government or Ulil Amri is permitted to collect taxes such as GST when there is a need for the maslahah (benefit) of the country and its citizens. However, there is Syara’ guidance that need to be complied throughout the implementation which are; the Government committed to implement Islamic Shariah, Government needs the financial resources, tax been imposed for the purpose to meet the maslahah of Dharuriyat (necessity) and Hajiyyat (complementary), tax been imposed equally, tax spent for maslahah ummah and tax distribution coincide with Ijtihad (e-Fatwa Portal Rasmi Fatwa Malaysia, 2015).
By referring to the following legal maxim; “Sharia is built on the basis of securing human maslahah (benefit) and distanced them from mafsadah (harm)”, scholars were of the view that in order to meet the public maslahah, it is allowed for the Government of Malaysia to charge GST on its citizens. Apart from that, scholars were also of the view that the government is allowed to collect the GST on the basis that if the GST is not collected, many public maslahah cannot be implemented by the Government as compared to only certain specific harm (mudharat) towards people's possessions. The following legal maxims were referred to; “To bear the specific harm or injury incurred in order to prevent public harm” and also “When there are two things that cause harm, the greater harm is to be considered as the most important. Hence,
Effective from 1 April 2015, the Government of Malaysia will impose the Goods and Services Tax (GST) in order to replace the existing Sales and Service Tax. GST is a consumption of goods and services tax which is based on multi-stage concept. GST will be imposed on all taxable supplies of goods and services other than those which had been categorised as zero rated supply.
The 106th Muzakarah Jawatankuasa Fatwa Majlis Kebangsaan which was held on 21 to 22 October 2014 had resolved that the government or Ulil Amri is permitted to collect taxes such as GST when there is a need for the maslahah (benefit) of the country and its citizens. However, there is Syara’ guidance that need to be complied throughout the implementation which are; the Government committed to implement Islamic Shariah, Government needs the financial resources, tax been imposed for the purpose to meet the maslahah of Dharuriyat (necessity) and Hajiyyat (complementary), tax been imposed equally, tax spent for maslahah ummah and tax distribution coincide with Ijtihad (e-Fatwa Portal Rasmi Fatwa Malaysia, 2015).
By referring to the following legal maxim; “Sharia is built on the basis of securing human maslahah (benefit) and distanced them from mafsadah (harm)”, scholars were of the view that in order to meet the public maslahah, it is allowed for the Government of Malaysia to charge GST on its citizens. Apart from that, scholars were also of the view that the government is allowed to collect the GST on the basis that if the GST is not collected, many public maslahah cannot be implemented by the Government as compared to only certain specific harm (mudharat) towards people's possessions. The following legal maxims were referred to; “To bear the specific harm or injury incurred in order to prevent public harm” and also “When there are two things that cause harm, the greater harm is to be considered as the most important. Hence,