KUALA LUMPUR, Oct 23 — The collection from the Goods and Services Tax (GST) will be used in the country’s development expenditure in Budget 2016, Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah revealed today.
The Second Finance Minister said the expected RM39 billion revenue from the consumption tax next year will first be used in development expenditure.
“The role of the government is to look after the welfare of the people, meaning many things.
“Skills, education, you want to ensure we can sustain the economic growth, so we spend on development expenditure. On the other hand, we give direct benefit to the rakyat, means it is being used eventually for the welfare of the rakyat,” he told reporters at the Parliament lobby here, without elaborating what he meant by “direct benefit”.
PKR deputy president Azmin Ali criticised earlier today the small portion of development expenditure, at 19.5 per cent, compared to operating expenditure in the government budget for next year at 80.5 per cent.
Husni said collection from GST, along with an expected increase in corporate tax collection, and personal tax will make up the shortage in revenue from the oil industry that has a suffered a global plunge.
In Prime Minister Datuk Seri Najib Razak’s Budget 2016 speech, he announced that income tax will be increased from 25 per cent to 26 per cent for those earning between RM600,000 and RM1 million.
Those earning above RM1 million will now have to pay 28 per cent in income tax.
No changes to the corporate tax bracket was announced.
