Pakatan presidential council may discuss GST next week

Updated 6 years ago · Published on 4 Oct 2019 10:18AM · 3 Comments

A month after coming to power in May last year, Pakatan zero-rated GST, eventually replacing it with SST on September 1 the same year. – EPA pic, October 4, 2019.

CALLS to reintroduce the goods and services tax may be raised at next Monday’s Pakatan Harapan presidential council meeting, The Star reports Saifuddin Nasution Ismail as saying.

The PKR secretary-general, when asked about Prime Minister Dr Mahathir Mohamad’s comments yesterday on requests for GST to be brought back, said the meeting is the best platform to discuss the matter, as it would require a policy shift.

Dr Mahathir, responding to the Malaysian Institute of Economic Research’s (MIER) suggestion for a return of the tax, said: “If people believe it (GST) is better, we will study it… if it is better than SST (sales and services tax).”

On whether the move will be reflected in Budget 2020, to be tabled next week, he said: “Maybe we can do it later.”

MIER proposed that Putrajaya reintroduce GST, but at a rate of 3% instead of the original 6%.

Its chairman, Kamal Salih, reportedly described the tax regime as fair to Malaysians from all walks of life, and that GST kept the government afloat when crude oil prices declined to less than US$36 (RM150) a barrel in 2015.

Saifuddin, who is also domestic trade and consumer affairs minister, said PH leaders need time to study the research outfit’s suggestion, as proceeding with it would require a huge shift in policy.

“It will have an impact politically. We have to listen, debate and study all the implications, economically as well as politically.”

He dismissed talk of another flip-flop by the PH administration, saying to make such a conclusion is premature.

Doing away with GST was one of PH’s major promises during its 14th general election campaign. The tax was zero-rated in June last year, a month after the pact came to power, and replaced with SST on September 1 the same year. – October 4, 2019.

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Comments

  • Tell us what are the impacts when GST is reintroduced. If govt can anticipate true and real consequences of the U turn, pls delay it. Where u find a govt elected bcos of its commitment to scrap GST , now wants to reintroduce GST. Bite the bullet and run through the entire 5 year without GST and see how it goes. U can change policy but don't be seen as a naive and stupid govt.

    Posted 6 years ago by James Wong · Reply

  • What?..WTF!

    Posted 6 years ago by KC Yip · Reply

  • Pls dont give Najib another bullet to hit PH pls!!

    Posted 6 years ago by Angeline Yee · Reply