PAKATAN Harapan made a mistake by removing the goods and services tax (GST), former CIMB Group Holdings Bhd’s chairman Nazir Razak said.

MalaysiaKini had reported that Nazir, who is the brother of former prime minister Najib Razak, said that implementing GST correctly is the right way forward in the long term.

“Firstly, GST is the right way forward.  But it has to be implemented in the right way.

“It was a mistake for Pakatan to remove the GST. They should reduce GST and give more exemptions to lower-income groups.

“But it (GST) is something necessary in the long term,” he said after introducing his book ‘Di Sebalik Nama’ during the Kuala Lumpur International Book Fair 2022 at the KL World Trade Centre.

Nazir was responding to a question regarding Prime Minister Ismail Sabri Yaakob’s recent statement that the government was keen to reintroduce GST.

On Wednesday, Ismail said the government is aware of GST’s unpopularity but had limited options, adding that its abolition had cost the country RM20 billion in annual revenue.

He said the government would set a rate of minimal impact to taxpayers.

Najib had introduced the controversial tax in 2015, but it was scrapped three years later by then PH prime minister Dr Mahathir Mohamad, as part of the coalition’s election manifesto pledge.

Nazir said Putrajaya should look into imposing lesser tax on the people as they are facing rising prices of goods and suffering from the effects of the Covid-19 pandemic.

He suggested that the government tax the wealthy more, including imposing a windfall tax.

“Many countries realise this, (that) if they don’t increase their income, their taxation, then they can’t help the poor.”

On the 15th general election, Nazir said it would be a distraction, but it would not necessarily affect the economy.

“I think many things determine the timing of an election and we leave it to the prime minister and others to decide.

“Effect on economy? Today we have many challenges, but we know that at some point we have to have an election anyway.”

Yesterday, DAP secretary-general Anthony Loke said that Ismail must be more assertive and consistent in his stance as to when GE15 will be held.

He said Ismail should not give “flip-flop” messages that will only lead to continued political instability and harm the country’s economy further.

“The decision to advise the Yang di-Pertuan Agong to dissolve Parliament is at the discretion of the prime minister.

“This very important decision should not be influenced by unrelated parties who are only concerned about their political survival.”

Loke was referring to Ismail’s interview with Japanese media Nikkei, which was aired last Monday, where he stated that the elections would not be held in the near future as the cost of living for the people needs to be addressed.

In just 48 hours, Ismail changed his tone while speaking at the Barisan Nasional (BN) Convention on Wednesday. – June 3, 2022.