BARISAN Nasional is considering a review of the hated goods and services tax (GST) on top of introducing more income tax relief as part of its 14th general election manifesto, sources said.

The review of the consumption tax, which the opposition promises to abolish if it comes into power, was to address the hike in cost of living.

The review of the tax might see the removal of the standardised 6% rate across all goods and services, and in its place, a system that charges differing rates for different segments.

The government is also looking at exempting several services from GST, such as utilities, housing, public transportation and education.

PH in its manifesto dubbed the “Book of Hope”, launched on March 9, pledged to abolish GST within 100 days of coming into power in Putrajaya.

The opposition pact has continuously criticised the GST since its introduction three years ago on April 1, 2015 to replace the sales and services tax (SST).

The federal government has defended the GST, with Prime Minister Najib Razak arguing many times that the tax was crucial to add to the government’s coffers to fund development.

Najib has also defended the 6% rate as among the lowest in the world.

He said GST has raised RM45 billion that had been channelled back to the people in the form of government aid and development.

Meanwhile, BN might also increase the individual tax relief from RM9,000 to RM12,000.

The last time an increase was made was in Budget 2010, the first budget tabled by Najib as prime minister. He announced an increase of tax relief from RM8,000 to RM9,000 then.

BN is also looking at increasing tax relief for medical treatment, special needs and care expenses for parents from RM5,000 to a maximum RM10,000.

PH’s manifesto is also introducing a “people and business-friendly” tax system with focus given to the middle 40% group (M40), small businesses and part-time workers.

The launch of BN’s manifesto in Kuala Lumpur is scheduled on April 7, two days after the end of the Dewan Rakyat and Dewan Negara sittings, according to reports.

Najib, as BN chairman, is scheduled to launch the manifesto before the leaders of all 13 BN component parties and thousands of their members and supporters.

It is speculated that the launch this time will be at a grander scale than the last manifesto launch ahead of the 13th general election in 2013 at the Putra World Trade Centre.

That year, BN launched its manifesto 28 days from polling day. In 2008, the manifesto was unveiled just 11 days before polling. – March 29, 2018.