‘GOVT CAN AFFORD TO SCRAP GSTʼ
Good financial management will ensure govt has enough funds, says prime minister
The lack of funds in the government is not because of insufficient income, the current (national) income is three times higher than during my time as prime minister (before). However, funds were misused."
TUN DR MAHATHIR MOHAMAD, brushing aside claims that the countryʼs revenue will decrease if the GST is abolished.
PRIME Minister Tun Dr Mahathir Mohamad has brushed aside claims that the country’s revenue will decrease should the Goods and Services Tax (GST) be abolished.
“The lack of funds in the government is not because of insufficient income, the current (national) income is three times higher than during my time as prime minister (before).
“However, funds were misused. They were used to buy support for (former prime minister) Datuk Seri Najib Razak. This is why we have less money,” he said at a briefing session for RTM and Bernama at his residence in Seri Kembangan here yesterday.
Dr Mahathir said he was confident that the country would have enough money with good financial management.
The government could reduce its spending by discontinuing or delaying unimportant projects, he said.
He emphasised the importance of boosting purchasing power than raising the salary of civil servants.
“If we raise salaries but (at the same time) the prices of goods increase, those with the extra income will not be able to live more luxuriously than before.
“That is why we want to look at the effect on cost each time salaries are raised.”
On the price mechanism for fuel, Dr Mahathir said the government would maintain the weekly determination of retail prices of petrol and diesel, while studying other mechanisms.
“We (will) look at other mechanisms to determine whether the pricing will be based on global oil prices or our productivity.”