‘NO HIKE IN GST AFTER GE14’
Existing rate good enough, contributes to revenue of RM40 billion, says DPM
THE government has given an assurance that the country’s Goods and Service Tax (GST) of six per cent will not be raised, even after the 14th General Election.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said this decision was due to the fact that the government had made a calculation and found that the existing rate was sufficient and could contribute to the country’s revenue of more than RM40 billion.
He said in the 2018 Budget the government also projected an increase in revenue from oil and gas to about US$70 (RM280) per barrel from US$52 per barrel.
“Revenue from oil, derived from the Petronas’ dividend is able to help the government to implement projects listed in the Barisan Nasional manifesto, apart from enabling the government to accommodate an annual salary increase of the public servants as announced recently,” he said here yesterday.
Zahid said rumours about an increase in GST had been spread by irresponsible parties to undermine the people’s trust in BN.
He said the allegation was unfounded because the Finance Ministry and the Bank Negara did not see any need to raise the existing rate.
“Our revenue is not only sufficient, but could also accommodate the budget that has been announced.
“It is also more than adequate to see us through for the next five years,” he said.