KUCHING: The Goods and Service Tax (GST) benefits the country only if the government manages it properly and efficiently to help improve the livelihood of the rakyat.
Deputy Minister in the Premier’s Department (Corporate and UKAS) Datuk Abdullah Saidol opined that if the GST is reintroduced the taxes can be used to help society, especially the B40 group, who is facing inflation and rising price of goods.
“If that’s the objective of the government to help lessen the burden of the people, I support the government’s decision to reintroduce the GST.
“However, if it does not manage the money collected in an efficient manner, then the GST is unnecessary because it will only add to the country’s debt and the welfare of the people will not be taken care of,” he said.
Abdullah was speaking to reporters after attending the Agenda 2023 DBP Sarawak nranch launch ceremony and the Syarahan Hari Pejuang Bahasa 152 at Balai Budaya, DBP this morning (Feb 15).
“I have nothing to say on whether I am in favour of the introduction of the GST, but looking from an economic point of view, it looks positive because it can be our tabung negara.
“Simply, the taxes are collected from businesses that have generated incomes of at least RM500,000 or above.
“If the taxes can be collected by the government, then it can be used for the welfare of the people, especially those who are in need,” explained Abdullah.
He also noted that the price hikes of goods are not caused by the GST but rather by other factors.
“Even though the GST has been abolished, the prices of goods are still increasing. So it may be caused by other factors.
“Note that over 170 countries have imposed the GST and they use the money collected for the people, so we must remember who pay taxes,” added the deputy minister.
He said big companies and businesses are able to afford the GST in a situation where it can help improve the socioeconomics of the country.
“Had I not been a politician and based on my past corporate experience, I would support the implementation of the GST but perhaps adjust the imposed tax percentage according to the economic situation so as not to burden the people,” he said.
On Feb 14, Prime Minister Datuk Seri Anwar Ibrahim told parliament that the government has no plans to reintroduce the GST or any other broad-based consumption tax.
Instead, Anwar said the government will look towards reducing subsidies enjoyed by the wealthy.
