GST not to blame for price of 'ikan kembung', says Najib

Muzliza Mustafa Muzliza Mustafa Updated 6 years ago · Published on 23 Mar 2018 10:42PM · 2 Comments

Prime Minister Najib Razak (left) speaks with his adviser, Idris Jala at a National Transformation Programme (NTP) dialogue at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur, tonight. – The Malaysian Insight pic by Najjua Zulkefli, March 23, 2018.

THE rising cost of living is not solely due to the goods and services tax because 578 basic items are GST-exempted, says Prime Minister Najib Razak.

“We exempted 578 items including rice, eggs, fish, meat, vegetables, bread, cooking oil, fruits, even petrol from GST.  They are either zero rated or exempted,” he said.

He said the people should not blame the government for the hike in the price of ‘ikan kembung’, or mackerel, as fish was a tax-exempted item.

He said the GST had in fact helped the government to reduce the inflation rate which was at the lowest this year at 1.4%, compared with pre-GST years, particularly in 2008, when inflation soared to 8.4%.

Najib said the tax was not a new idea and that those in power had toyed with it as far back as 1984, only to be held back by lack of courage.
 
Dr Mahathir Mohamad was the prime minister in 1984.

“The government then wanted to implement the GST but had no political courage. But we are willing to bear the political costs because it is the right thing to do. The GST will benefit the rakyat and the country,” Najib said. – March 23, 2018.

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Comments

  • Did Malaysia need the revenue from GST if it had been implemented in 1984? Only Dr. Mahathir can properly answer this question? Possibly we could manage with the revenue that was available at that time, so this could explain why though GST was mulled then, it never became necessary to have it. There were alternative sources of income. Yes?..

    Posted 6 years ago by MELVILLE JAYATHISSA · Reply

  • Yes mackerel is gst free but the fishermen who catch mackerel need to be compensated for higher cost of living due to gst. Consequently, price of mackerel goes up.

    Posted 6 years ago by Ali Salleh · Reply