KUALA LUMPUR, July 17 — Pakatan Harapan’s move to replace the goods and services tax (GST) with the previous tax regime will lower public revenue without bringing any tangible benefit to consumers, said Umno’s Khairul Azwan Harun.
The senator insisted that the sales and services tax (SST) that will be reintroduced in September will also end the current tax holiday and before any significant price reductions can manifest from the removal of the consumption tax.
He also said the PH administration must find a way to reintroduce the SST without inviting public displeasure.
“The task is impossible and Minister Lim Guan Eng looks like a lonely figure as his colleagues leave the new tax plan for him to carry alone,” he said, in reference to the incumbent Finance minister and Bagan MP.
“Before election, PH promised heaven on earth when they told the rakyat that Malaysians would see cheaper goods with the elimination of GST.
“Not only has the cost of living not improved, now we are facing more taxes in SST. Six per cent for services and 10 per cent for sales,” he said in the statement.
The former Umno Youth deputy chief said the people will soon realise that the ruling government does not have a solid plan in proceeding with the move.
On June 1, the GST was zero-rated and will be replaced by the SST on September 1 as part of the PH’s election pledge to abolish the former tax, which was implemented by the previous Barisan Nasional government in April 2015.
