KUALA LUMPUR – The Pakatan Harapan administration erred when it decided to remove the goods and services tax (GST) after their 2018 election victory, Tan Sri Nazir Razak insisted today.
The prominent banker and younger brother of Datuk Seri Najib Razak agreed the GST should be reinstated, but stressed it has to be appropriately introduced.
“Firstly, GST is the right way forward. But it has to be implemented the right way. It was a mistake of (Pakatan) Harapan to remove the GST.
They should reduce the GST and give more exemptions to the lower income (groups).
“But it is something necessary in the long term,” he was quoted saying by news portal Malaysiakini during the introduction of his book, Di Sebalik Nama (Behind The Name) at the Kuala Lumpur International Book Fair 2022 at the Kuala Lumpur World Trade Centre.
He made the remark when asked to comment on Prime Minister Datuk Seri Ismail Sabri Yaakob saying the government is mulling reintroducing the taxation rate.
Ismail Sabri had made the comment during an interview in Japan with financial paper Nikkei Asia, adding the government would aim to implement a tax rate that is not so high it burdens the people, but not so low that it “defeats the purpose of expanding tax revenue”.
The GST was introduced by the Barisan Nasional government under Najib’s leadership in 2015 at a rate of 6%, and was later repealed by the PH government, after including its abolishment as part of their election manifesto.
Nazir, during his speech at the book launch, had also advised the government to revisit how it taxes the people, even suggesting a windfall tax.
“Many countries realise this; if we don’t increase our income, our taxation, we can’t help the poor,” he added.
Additionally, when asked about the potential effects on the economy should a general election be held soon, Nazir asserted it would be a distraction but denied it would cause major drawbacks to the economy.
“Effect on the economy? Today we have many challenges, but we know that at some point we have to have an election anyway. I don’t think it (an election) necessarily affects the economy.
“I think it’s a big distraction, but you have to have it anyway,” he was quoted saying. – The Vibes, June 3, 2022
