KUALA LUMPUR – The Perikatan Nasional government has been urged to come clean on whether it intends to reimplement the goods and services tax (GST), which was abolished by Pakatan Harapan two years ago.
Subang MP Wong Chen of PH put the question to the Finance Ministry in the Dewan Rakyat today, saying the sales and services tax (SST), which replaced GST, may not be suitable during the Covid-19 pandemic.
“With the Covid-19 crisis at play, it is clear that the government needs a more stable consumption tax than SST.”
However, he cautioned Putrajaya not to make the same mistake as former prime minister Datuk Seri Najib Razak.
“Najib’s mistake in introducing GST was setting the tax rate at 6%.”
Wong recommended a rate of 3% for the first five years, to allow consumers and traders to adapt.
With the implementation of GST, he said, the government can then increase cash handouts and the minimum wage to reflect the true cost of living.
“I ask the Finance Ministry to give an honest answer on whether they intend to replace SST with GST.” – The Vibes, December 17, 2020
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