KUALA LUMPUR, Oct 4 — The Pakatan Harapan (PH) presidential council next Monday may discuss calls to bring back the goods and services tax (GST) introduced by the Najib administration.
Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail was responding to Prime Minister Tun Dr Mahathir Mohamad’s reply yesterday that his government will study the unpopular consumption that has since been replaced with the sales and services tax (SST).
“If the statement made by Prime Minister Tun Dr Mahathir Mohamad is seen as something that is acceptable by the Pakatan leaders, definitely it will be discussed,” Saifuddin Nasution was reported by The Star as saying in Putrajaya yesterday.
Yesterday Dr Mahathir said the government is open to suggestions to reinstate the GST following criticism of the SST.
PH rose to power on the back of public anger against government scandals and the GST, which was highly blamed for raising living costs.
The 6 per cent consumption tax was introduced by the Najib administration on April 1, 2015 and suspended after PH took over last year as part of the ruling coalition's effort to bring prices of good dows.
The SST subsequently came into place on September 1, 2018, ending a three-month “tax holiday”.
Living costs have remained more or less the same since, prompting a fresh wave of protest against the SST.
Two days ago, Malaysian Institute of Economic Research chairman Tan Sri Kamal Salih mooted bringing back the GST, which he described as a tax regime that was fair to all, adding that the consumption tax brought in revenue and kept the government afloat when crude oil prices dropped to below US$36 a barrel in 2015.
However, Opposition party PAS is opposed to any move to bring back GST.
Its deputy president Datuk Tuan Ibrahim Tuan Man was reported by PAS-owned news portal Harakah Daily as pushing for heftier taxes against the rich by introducing higher corporate tax and a capital gains tax — a proposal once adopted by PH.
“PAS had made suggestions whereby the rich must pay in the form of corporate and capital gains tax because these people have billions, yet none of it is taxed,” the Kubang Kerian MP was quoted saying.
At the same time, PAS’ new Barisan Nasional ally Umno said the prime minister's willingness to consider rolling out the GST was proof that the tax had worked, Sinar Harian reported.
Umno vice-president Datuk Seri Ismail Sabri Yaakob said PH owed the public an apology for deception, which fueled hatred against the Najib administration.
“Voters were deceived by PH's lies about GST and the supposed positives of the SST, but now the coalition is admitting that the former is actually better,” he was quoted as saying.
