Malaysia
DAP: Budget 2016 handouts overshadowed by GST, toll hike, ringgit slump
Malay Mail

KUALA LUMPUR, Oct 23 — Budget 2016 does not reduce Malaysians’ financial burden, DAP’s Lim Guan Eng said today as he reiterated his call for the abolition of the Goods and Services Tax (GST).

The Penang Chief Minister said Prime Minister Datuk Seri Najib Razak did not mention steps to strengthen the ringgit, which is now at RM4.22 against the US dollar.

“It does not solve the problem of GST, how we can resolve it. It has to be abolished,” Lim, who is DAP secretary-general, told reporters at the Parliament lobby here.

“If not what happens, as I’ve said, we have lost RM100 if there is GST, toll [hike], increase in oil prices and the depreciation of the ringgit. We lose RM100, and he gives RM30, so no difference,” he added.

The government budget tabled in Parliament, however, doubled the number of medicines zero-rated under the GST and expanded the zero-rated list for household items, including kolok noodles for Sarawakians.

DAP publicity chief Tony Pua questioned the announcement of several mega infrastructure projects, such as the MRT2 line and the Pan Borneo Highway, which he claimed were funded by off-budget expenses that are not reflected in the official budget.

“These off-budget measures make a complete mockery of the prime minister’s boast that the Budget deficit will be further reduced from 3.2 per cent in 2015 to 3.1 per cent in 2016.

This is because the projected deficit does not take into consideration the off-budget expenses funded by government guaranteed borrowings will ultimately be borne by the federal government,” Pua said in a statement.

Budget 2016 allocated RM267.2 billion for federal spending, an increase from a revised allocation of RM260.7 billion for 2015.

For 2016, federal government revenue collection is projected at RM225.7 billion, up from RM3.2 billion from 2015.

GST collection is expected to increase government revenue by RM39 billion, versus RM27 billion in the first eight months of 2015.

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