KUALA LUMPUR, May 10 — Prime minister-elect Tun Dr Mahathir Mohamad insisted today that Pakatan Harapan will remove the Goods and Services Tax (GST) in favour of the previous Sales and Services Tax (SST) as pledged.
When asked about his pact’s intention to deliver on its pledges now that it has won the 14th general election, Dr Mahathir stated that there was no ambiguity on this matter.
"That is a cancellation. We don’t need it,” he said emphatically.
When asked if a new tax regime would be introduced instead, he said: "No. we will go back to the sales tax, for the moment.”
In its election manifesto, PH said it intends to replace the GST with a "fairer” Sales and Services Tax (SST).
The pact also promised a holistic review of the country’s tax system in order to lessen Malaysians’ burden, including a relook of the corporate tax rate and income tax on small businesses and freelancers and personal income tax.
The Barisan Nasional had then criticised the manifesto, with former BN strategic communications director Datuk Seri Abdul Rahman Dahlan saying the government had collected RM41 billion through GST as compared to RM17 billion with SST.
Abdul Rahman reportedly questioned how PH would cover the deficit of over RM20 billion if it abolished the GST.
The GST was introduced at a rate of six per cent on April 1, 2015, replacing the previous SST regime.
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