Dr M: We may bring back GST….if the public agrees
PUTRAJAYA: The government may consider reintroducing the controversial Goods and Services Tax (GST), provided the public backed the move.
Prime minister Tun Dr Mahathir Mohamad said this in response to Malaysian Institute of Economic Research’s (MIER) suggestion yesterday for the consumption tax to be brought back, but at 3% instead of the previous 6% under the Najib administration.
“Well if that is what the public wants, we will study to see if it is better than the Sales and Services Tax (SST),” he said.
However, Mahathir said the decision would not be part of Budget 2020 and the government would decide on the matter later.
Yesterday, MIER chairman Tan Sri Kamal Salih said GST had helped to create a buffer to the nation’s coffers, after crude oil prices dived below US$36 per barrel in 2015.
Though unpopular among the masses, Kamal described the tax regime as “fair to all walks of life”.
During the 14th general election, Pakatan Harapan had campaigned on the removal of GST that rival Barisan Nasional had introduced.
After taking over federal power, Mahathir promptly abolished the tax and replaced it with the SST.
By G Vinod