‘Axing GST won’t bankrupt country’
> Selangor doing well even after giving tax exemptions, says Azmin
KUALA SELANGOR: Datuk Seri Mohamed Azmin Ali has rubbished claims that the country would go bankrupt if the Goods and Services Tax (GST) was abolished.
The Selangor mentri besar said the state writes off about RM80 million each year on assessment tax exemptions for low-cost and village home owners, but still has over RM3 billion in reserves.
“We have abolished assessment tax for certain groups for the fourth year now, which makes the total about RM300 million. But we still exempt it because we want to give back to the rakyat.
“Even if you don’t charge taxes, you won’t go bankrupt. In fact, our revenue and reserves have increased, and our state is more developed now,” he said during a programme with Kuala Selangor residents yesterday.
Pakatan Harapan (PH) had in its manifesto promised to abolish GST within 100 days of coming into power.
The proposal has been criticised by Barisan Nasional leaders, including Prime Minister Datuk Seri Najib Abdul Razak, who claimed the move would put the country further in debt and possibly face bankruptcy.
Azmin, who is also PKR deputy president, said the government’s decision to grant GST exemption to China Communication Construction Company for the construction of the East Coast Rail Link was also “an act of betrayal”.
He said the move was unfair, as all citizens, including those in the lower income group, are subjected to GST.