KUALA LUMPUR: The implementation of a goods and services tax (GST) will burden the working class, Malaysian Trades Union Congress (MTUC) vice-president A. Balasubramaniam said.

"With GST, prices of goods currently not taxed will see an immediate increase of 4%," he said at a forum organised by Parti Sosialis Malaysia.

He also said that most employees in the country were not represented by a union, making it difficult for them to ask for better pay.

"With no representation, a huge group of employees will not have a channel to demand high wages in view of higher inflation," Balasubramaniam added.

Petaling Utara Member of Parliament Tony Pua, also a panelist at the forum, said GST was a regressive tax, whereby the lower income group will have to fork out a greater percentage of expenditure.

"There are 1.8 million taxpayers in the country, making up only 15% of the workforce. The remaining do not pay income tax because they do not qualify.

"By implementing the GST, the low income group will now have to pay tax," said Pua, who is also the DAP national publicity secretary.

He said the GST was only suitable for implementation when Malaysia becomes a high income society.

-- The Star/Asia News Network