THE Pakatan Harapan (PH) Presidential Council has rejected the proposal to reintroduce the Goods and Services Tax (GST) by Prime Minister (PM) Datuk Seri Ismail Sabri Yaakob.
The council said the reintroduction of the tax will result in a sharp increase in the price of goods, especially during the time when people are struggling with rising cost of living and higher inflation.
“The reintroduction of GST will result in the price of goods rising sharply. If coupled with supply chain problems as well as stagnant wages, the people will be receiving tremendous pressure,” the council said in a statement today.
Ismail Sabri said to Nikkei Asia that to expand its revenue base, the government is keen to bring back the GST.
PM noted on the negative perception on GST, but said the government would also formulate ways to educate the public on the importance of GST and transparent tax collection.
“The government will aim for a rate that is not so high that it burdens the people, but not so low that it defeats the purpose of expanding tax revenue,” he was quoted as saying.
PH council, however, said it is unreasonable for the government to collect more taxes from the people without first proving the reform and improvement in its governance.
“There is no point in collecting more taxes if, eventually, the people’s money are wasted due to corruption, leakages and cronyism,” it said.
“The PM should also be reminded that the majority of Malaysians have rejected GST in the last election.” — By TMR/graphic by TMR