Govt to consider reinstating GST if people want it, says PM

Timothy Achariam Lee Chi Leong Timothy Achariam, Lee Chi Leong Updated 6 years ago · Published on 3 Oct 2019 10:46AM · 7 Comments

Prime Minister Dr Mahathir Mohamad says the government is open to having the GST replace the current SST if Malaysians want it that way. – The Malaysian Insight pic by Nazir Sufari, October 3, 2019.

PUTRAJAYA will consider bringing back the abolished goods and services tax (GST) to replace the sales and services tax (SST) if it is what the people want, said Prime Minister Dr Mahathir Mohamad.

“If the people want it (GST), we will study whether it is better than the current SST,” he said after launching the Security and Public Order document in Putrajaya today.

He said if the people believe GST is better, the government will conduct the study.

Dr Mahathir, however, said it is too late to reinstate the GST at Budget 2020 that will be unveiled next week.

Earlier this week, the Malaysian Institute of Economic Research urged the government to re-introduce the GST.

Describing GST as a tax regime that is fair to all, MIER chairman Kamal Salih said tax was the system that kept the government afloat when crude oil prices declined to as low as US$36 per barrel in 2015.

“GST is a fair system, some people said it is regressive because the poor will be affected.

“But we have exclusion clauses that will protect the lower income group, or B40.”

Kamal had said while the Pakatan Harapan government abolished the GST and replaced it with the SST last year, he was one of the economists consulted who were against the idea.

“Because no matter how you expand the SST to different sectors or how the enforcement is done, it will still not be enough to fill what (income) has been produced by GST.”

The Pakatan Harapan government abolished GST immediately after assuming federal power as it was one of its election promises.

It replaced the GST with SST after giving a month-long tax break for Malaysians. – October 3, 2019.

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Comments

  • ha, ha!

    If the people want it.... Apa tu..??
    Or .... do I see another u-turn on the way...?

    No lah, what the people want is lower of cost of living...which PH promised to address, and have thus far failed to do so. GST abolishment was the battle cry pre-GE 14, as a measure to bring down cost of living.

    But GST itself wasn't the problem; it's the management and the implementation, by an already corrupt, inept government, which was the problem.

    With the present coterie of PH ministers - and with the rudderless Mahathir at the helm - no amount of GST/SST bla bla would resolve the problem.

    Posted 6 years ago by Rock Hensem · Reply

    • bulls eye. bring gst back if this would improve the ecnomy and help the poor but stop traveling/ politicking and start improving lives. if its too hard, resign and pass on

      Posted 6 years ago by . . · Reply

  • Wtf!!!

    Posted 6 years ago by Lan Lan · Reply

  • Have a referendum to let people decide just like the Uk Brexit?

    Posted 6 years ago by Chee yee ng · Reply

  • GST is a blanket tax, how can it be welcomed by the lower income group of people? Gives GST rebates like our neighbor do? People ridicule it as giving drumsticks but taking back the chicken. GST collection has become a very efficient means of generating income for the government, so efficient that the government cannot live without it. Its rate can be manipulated by unscrupulous government and people just have to pay for it. Who suffer?

    Posted 6 years ago by Tanahair Ku · Reply

  • Najib will be the first one to mock at PH.

    Posted 6 years ago by Tanahair Ku · Reply

  • Price of properties up 100% since 2015. Everything will go up in price bcos rental depends on property price and is a key factor affecting rental and main cost of doing business.

    Posted 6 years ago by James Wong · Reply