No hike in GST a relief to many

KUALA LUMPUR: The government’s move to maintain the Goods and Services Tax (GST) at six per cent was a relief to many as word of it being increased had been widely circulated on social media.

Hotel executive Michele Lawrence yesterday said that when she heard the rumours about a week ago, all she could think about was how it would be a struggle to stretch her earnings.

“Just as I was about to accept that I have to live with the additional six per cent on much of what I spend, the rumour came about. I watched the live budget speech just to make sure it was not increased,” said the single mother, who is based in Kota Kinabalu.

Echoing similar sentiments was Kuantan-based kindergarten owner, Saadiah Abu Bakar, 52, who said any increase in GST would likely trigger hikes in prices.

“That would result in me forking out more to run my business,” she said.

Customer relations executive Izzawafi Idris, 27, said the GST rate was a burden for many low-income earners and things could have been worse if it was increased.

“Since the GST was introduced last year, I spent more on food, daily necessities and transport,” he said.

In asserting the GST would remain the same next year, Prime Minister Datuk Seri Najib Razak revealed that about RM30 billion was collected by the government.

“We should not believe the rumours about the increase in GST rates. Those are just hearsay.”

In the budget, the government also proposed to enable more disabled persons, including non-Private Charitable Entity (PCE) members, to benefit from the relief.

It was proposed that the GST relief be given directly to valid OKU (Orang Kurang Upaya) cardholders for the purchase of approved equipment from suppliers designated by the Social Welfare Department.

Umno Information chief Tan Sri Annuar Musa said GST had helped preserve the nation’s coffers and cushioned the impact of the drop in oil and gas revenue.

“This has frustrated the opposition as the prime minister stood by his principle in putting the interest of the people first,” he said.

Gerakan president Datuk Seri Mah Siew Keong said rumours of the increase was meant to provoke the public.

“The rumours were created by people with political agenda. The government will do the right thing to benefit the people,” he said.