PM: WE WILL BECOME A ‘DEFICIT NATION’ IF GST IS REPLACED WITH SST
Opposition’s pledge to replace it with Sales and Services Tax is a lie, says Najib
MALAYSIA will become a deficit nation if it replaces the Goods and Services Tax (GST) with the previous Sales and Services Tax (SST), said Prime Minister Datuk Seri Najib Razak.
He said the opposition’s declaration that it would implement the move, as stated in its 14th General Election (GE14) manifesto, was nothing more than a lie.
“The opposition is lying if it says it wants to abolish GST and replace it with SST.
“This is because had we not earned RM45 billion (from GST last year), we would have become a deficit country.
“If not for GST, the nation’s debt would have increased, and we would be in a similar situation like Greece and Italy.
“When it reaches that stage, the economy will be in ruins and people will suffer.”
Najib was speaking at the Welfare Association of Wives of Ministers and Deputy Ministers (Bakti) and Siswa programme at Seri Perdana here yesterday.
The event saw the attendance of more than 400 university students, Bakti volunteers and wives of ministers and deputy ministers.
Present was his wife, Datin Seri Rosmah Mansor, who is also Bakti president.
Last Thursday, Pakatan launched its 200-page manifesto, which centred on five pillars and 60 promises.
One of the manifesto’s thrusts was to scrap GST and replace it with SST.
The opposition had pledged to remove GST within 100 days of forming the Federal Government.
Najib said the opposition’s aim of abolishing GST appeared simple in theory, but it had yet to provide an explanation on how it would be carried out.
He said 164 countries had implemented GST, with the latest being India, which has the highest GST rate of 28 per cent, compared with Malaysia’s six per cent.
“Our GST is among the lowest in the world.
“In addition, the RM45 billion collected is used to subsidise education, health services, provide RM300 monthly aid to farmers and fishermen, as well as for the 1Malaysia People’s Aid,” he said.