Saifuddin disagrees with Najib

DATUK Saifuddin Nasution Ismail has refuted claims by the former prime minister that the country will lose its economic advantage if the Goods and Services Tax (GST) is abolished.

The Domestic Trade and Consumerism Minister said the country had implemented the Sales and Service Tax prior to 2015, but development and economic growth still continued.

“So what was the economic problem that we were facing at that time?” he said at the Parliament lobby.

Saifuddin was responding to remarks made by Datuk Seri Najib Tun Razak that the country would lose its economic advantage, catalyst for growth and competitiveness made possible by GST.

The problems and weaknesses of the old economic structure, such as high corporate taxes, tax evasion and outflow of illicit funds, would return, Najib said in a Facebook post.

Saifuddin said infrastructure development and distribution of assistance to the rakyat could still be implemented due to good financial discipline.

“Our financial management is good and our debt did not balloon out of proportion.

“Although we do not collect as much revenue under GST, we believe we still can drive the economy, protect the welfare of the rakyat, pay salaries and implement projects,” he added.

Asked what are the Government’s move if Bills related to the Sales and Service Tax are not approved by the Senate, Saifuddin said the Finance Ministry was looking at several legal options as part of an “exit plan”.

“We are looking at it with the Finance Ministry, including some provisions of the law.

“A Bill that is categorised as a Money Bill; there are ways for us to bring it forward and the Finance Minister is looking at it,” said Saifuddin.