PLANS TO IN­CREASE RATES’

New Straits Times - - News -

have the op­tion to in­crease the GST in the fu­ture.

Prime Min­is­ter Datuk Seri Na­jib Razak yes­ter­day said this was why the op­po­si­tion had changed their stance from want­ing to abol­ish GST, to zero-rat­ing it.

In fact, he said in a blog post­ing, they had ac­tu­ally planned to in­crease the GST rates.

Na­jib said the op­po­si­tion was not brave enough to ad­mit this now be­cause they needed to de­ceive the peo­ple in or­der to win in the com­ing gen­eral elec­tion.

“The op­po­si­tion knows that the GST would re­place the de­cline in oil rev­enue.

“There­fore, when they made the U-turn to main­tain the tax, their vot­ers were de­ceived.

“Hence, they (say they want to) hastily de­crease the tax from six per cent to zero per cent.

“(This) does not make sense, be­cause what’s the point of im­ple­ment­ing the sys­tem if no tax is col­lected?

“Why don’t they just abol­ish the sys­tem?”

Na­jib said the op­po­si­tion’s real plan was to dis­miss half of the coun­try’s civil ser­vants, teach­ers, doc­tors, se­cu­rity per­son­nel and to can­cel con­struc­tion of schools, mosques, roads and hos­pi­tals as well as abol­ish health and ba­sic pub­lic ser­vices if they took over the gov­ern­ment.

Since the col­lapse in oil prices in 2015, he said, the coun­try’s an­nual rev­enue had fallen to about RM40 bil­lion.

With a de­creased rev­enue for the an­nual bud­get, Na­jib said the gov­ern­ment was not able to pay the salaries of civil ser­vants, build new schools and hos­pi­tals, or fund se­cu­rity forces.

“Thank­fully, the GST sys­tem was in­tro­duced, re­plac­ing the Sales and Ser­vices Tax.

“Pre­vi­ously, there was a tax, but it was not re­vealed by some traders, which al­lowed them to set the rates them­selves. The GST in­forms con­sumers clearly about the six per cent rate.

“The GST is more sys­tem­atic, and more than 140 coun­tries in the world have im­ple­mented it.

“The sys­tem helps to boost the coun­try’s rev­enue, al­low­ing for the (con­tin­u­ous pro­vi­sion) of pub­lic ser­vices and pre­vent­ing our econ­omy from col­laps­ing be­cause of the low oil prices,” he said.

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