‘Same old song, same old story’, Aidel says of PH’s Alternative Budget

KUCHING: Sadong Jaya assemblyman Aidel Lariwoo has described Pakatan Harapan’s ( PH) Alternative Budget 2018, which will abolish the Goods and Services Tax ( GST) and giving special focus to Sabah and Sarawak’s development as among the key focus, as the ‘same old song (and) same old story’.

He said abolishing GST via zerorating did not make any sense.

“If more than 160 countries in the world have implemented GST, we can’t go wrong with it.

“Many or most countries taxed GST higher than us,” he said when contacted yesterday.

PH said it is committed to eliminating GST via zero rating, but will keep its reporting system.

“We aim to revert to pre- GST numbers on the matter of consumption tax. In effect, this means we will see a revenue shortfall of RM25.50 billion.

“Pakatan Harapan sees this policy as an absolute necessity in times of economic stagnation and consumer hardship,” PH’s statement said.

With this shortage, the coalition hoped to collect an addition RM2.81 billion in corporate income tax, RM1.46 billion in excise duties on goods (except motor vehicles) and RM1.82 billion in real property gain tax.

It also expected a 20 per cent increase in car sales following the abolishment of GST, which would contribute to RM1.93 billion in revenue through the collection of import tax, excise and motor vehicle licence.

Aidel responded by saying the collection of GST would ensure a stable and balanced revenue for the government.

“However, prudent financial management is a must if the government wants to see an excellent clean bill of health yet again.

“This is to improve the system such as procurement and project management as well as to ensure the delivery of government services is achieved.”

On another note, Aidel said he would agree if the excise duty for motor vehicles is cut further to reduce the price of cars in the country.

“Lost revenue on this (as a result of excise duty cut) can be easily recouped if the government ventures into other service segments that can generate revenue.”