PUTRAJAYA is not looking at imposing more taxes on the public, including by reintroducing the goods and services tax (GST), as a way to reduce the RM1.5 trillion national debt, Anwar Ibrahim said today.

The prime minister said the government will instead look at reducing subsidies to plug leakages that had cost the country billions of ringgit.

“The government does not plan to introduce GST or a broad-based consumption tax.

“What we will tighten is the reduction of subsidies for the rich as was done in the electricity subsidy issue.

“Despite the previous government’s decision to raise the electricity tariff, the current government has cancelled the proposal and only imposed it on large companies and multinational corporations, excluding companies that involve food and agriculture,” the Tambun MP said in parliament today during Ministers’ Question Time.

Last year, the government announced that medium- and high-voltage users among industry participants, including MNCs, would face a surcharge of 20 sen/kilowatt-hour from January 1 until June 30 this year.

Anwar said that in 2022, nearly RM20 billion was spent on diesel subsidies alone, of which, he said, based on the Auditor-General’s Report, almost half was sold through petrol stations.

“If we can save about RM5 to RM6 billion from leakages, that will help (reduce the cost of expenditure and national debt),” he added.

Anwar said government debt and liabilities stand at RM1.5 trillion, or 82% of the gross domestic product.

Anwar, who is also finance minister, said Malaysia paid RM41 billion in debt service charges in 2022, while for 2023, the payment was RM46 billion.

He said the 2023 debt service charge alone is around 16% of the national revenue.

“This means through the debt service payment, we are only paying the interest (for the debt) and not payment for outstanding debts,” he said. – February 14, 2023.