Admit GST caused price hikes, Lim tells BN leaders

KUALA LUMPUR: Finance Minister Lim Guan Eng has urged Barisan Nasional leaders to admit that the Goods and Services Tax (GST) caused price hikes.

He advised them to argue their points on GST versus the Sales and Services Tax (SST) based on facts and figures.

“Please refer to facts. We are dealing with facts and figures, not lies and falsehoods,” he said outside Dewan Negara yesterday.

“That is why we don’t want to engage them, because they don’t want to be guided by facts and figures. We hope BN can concede that GST caused price hikes.”

Lim said the Pakatan Harapan government was willing to admit that

SST, which comes into effect on Sept 1, might cause price hikes, but added that it would be only half as bad as GST.

Lim said the government would initially be lenient with traders on SST registration.

“If you can give us a reasonable excuse (for registering late), we will be lenient.

“But it cannot be used as an excuse not to register. It is better to register.

“If you register on Oct 1, you will have to pay the tax for September.”

He said it would be difficult for the government to achieve a balanced budget as it faced RM1 trillion in debts.

He said this would not only be difficult to reach next year, but also over the next few years.

He said while the government intended to break even, it was being held back by financial constraints.

“At the same time, the government needs to balance the (country’s) development and management,” he said while debating the Supply Bill (Reallocation of Appropriated Expenditure) 2018.

Senator T. Chandra Mohan had called on the government to achieve a balanced budget by prioritising expenses related to maintaining the people’s wellbeing.

Lim said the government understood that development expenditure could raise people’s quality of life.

However, he said, the budget was presenting a problem as some funds that could be diverted to development had been categorised as “operating expenditure”.

“If the government changes the status of this expenditure, it will result in a disparity in our balance sheets and throw accounts into disarray.

“Now, we have to follow guidelines and formulas that were carried out by the previous government.

“This is difficult, because nearly 40 per cent of the RM270 billion budget has been used to pay emoluments and pensions.

“And next year, the payment could reach RM100 billion. (But) the government’s revenue is RM130 billion and that is not enough to support these expenses.”

If you register (for the Sales and Services Tax) on Oct 1, you will have to pay the tax for September. LIM GUAN ENG

Finance minister