‘GST zero rating hasn’t cut prices’

KUALA LUMPUR: Former premier Datuk Seri Najib Abdul Razak described the impending implementation of the sales and service tax (SST) as a double whammy, claiming the rakyat would eventually bear the brunt of the rising cost of goods.

He said prices of items have largely remained the same since the Goods and Services Tax (GST) was zero-rated, and reintroducing the SST will only increase prices.

“The zero-rating of GST has not brought the desired impact that Pakatan Harapan (PH) would have wished for, and the addition of SST will only burden the rakyat more.

“The rakyat are sceptical and worried that SST would further increase prices by 10% for goods and 6% for services.

“So PH will not be able to fulfil its promise of reducing the cost of living,” he told reporters after attending the opening of the 14th Session of the Dewan Rakyat yesterday.

The implementation of SST will be one of the main talking points of the current Parliament session, with the act highly expected to be tabled, debated and likely implemented by the end of the sitting.

GST was introduced by the Barisan Nasional (BN) government on April 1, 2015 to replace SST, which they claimed was outdated.

Najib pointed out that while several items, such as cars, have seen price reduction since PH zero-rated the GST, prices of most other goods and services remained the same, if not higher.

Najib added he would speak more on the matter in parliament, and asked that the media and public remain patient until he tables his opinion.

PH had, in its election manifesto, promised to repeal GST as part of its 10 promises in 100 days.