GOVT NETS RM44B FROM GST

Collections this year may reach RM45b, says Najib

THE government collected RM44 billion from the Goods and Services Tax (GST) last year, Prime Minister Datuk Seri Najib Razak announced yesterday.

Najib said the GST collection last year was higher compared with RM41 billion in 2016.

“Although I have said, while tabling the 2018 Budget, that the GST collection this year is targeted at RM43.8 billion, I have been told by the Customs Department that the collections may reach RM45 billion.

“With a strong revenue base, we can redistribute income. And, I want to assure the people that the government has no plans to raise the GST rate,” he said at the World Customs Day celebration here.

Present were Second Finance Minister Datuk Seri Johari Abdul Ghani, Chief Secretary to the Government Tan Sri Dr Ali Hamsa and Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah.

Najib, who is finance minister, said Malaysia’s strong revenue base, especially from GST, allowed the nation to weather the sluggish global economy, keep recession at bay, continue with development programmes for the people and make special payments to 1.6 million civil servants.

He said the government’s courageous move to implement GST was one of the reasons why Malaysia’s credit rating remained strong.

The GST kicked off on April 1, 2015, at a rate of six per cent, replacing the Sales and Services Tax, and was introduced to 553 types of zero-rated goods and services, with another 25 exempted from GST.

According to the Economic Report 2017/2018 released in October, the sales tax and services tax contributed RM10.9 billion and more than RM6.27 billion in 2014 respectively, or a combined 7.8 per cent, of the government’s then total revenue of RM220.6 billion.

In the first three months of 2015, the sales tax and services tax contributed RM5.2 billion and RM3 billion respectively.

GST collection in 2015 was reported to be at RM27 billion, or 12.3 per cent, of the government’s revenue of RM219.1 billion, while GST collection last year was at RM41.2 billion, or 19.4 per cent, of the RM212.4 billion government revenue.

Najib lauded the Customs Department’s success in plugging leakages via smuggling activities.

“In this respect, the department has managed to save more than RM1 billion of the government’s revenue last year.”

He believed the department could execute its responsibilities well, despite being pressured and receiving threats.

“Although they have received threats or their were cars torched, I believe the department will not back down (from carrying out their duties).”

He thanked those in the department for their loyalty to the government and their contributions towards ensuring that Malaysia’s economy stayed vibrant.