KUALA LUMPUR, OCT 25–Prime Minister Najib Tun Razak has confirmed predictions of the implementation of the Goods and Services Tax. To be implemented come 1 April 2015, it is set at 6%, with the Prime Minister saying the amount is the lowest in the region. Najib Razak said the existing Sales and Services Tax was flawed and a fair tax system should be in place, before officially announcing the introduction of GST. Although it received mixed response from those present at the tabling of the 2014 Budget today, he said it is not a new form of tax and the government is confident of its introduction because inflation is at a controlled and minimum rate of 2%. He further explained that it will consolidate the amount of tax paid, as consumers no longer pay double taxation. Items that are exempted from GST include essential food items including sugar, salt, rice and oil, government services, purchase and rental of homes, electricity (exemption of up to 200 units), piped water supply, public transportation and health benefits.