KUALA LUMPUR, March 7 — Umno Bera MP Datuk Seri Ismail Sabri Yaakob has today renewed his call for the return of the abolished goods and services tax (GST), following the recent hike of sales and services tax (SST) on certain services.
The former prime minister said the tax, which was axed by the Pakatan Harapan administration, was proven effective in the past and would be able to prevent the increasing prices of goods.
“I would like to join my friends in making the call for the return of GST, no matter what it’s called, it was proven that the tax system was more transparent and can balance the government’s fiscal standing through revenue collection,” Ismail Sabri told the Parliament during his debate on the King’s speech here.
He proposed bringing back the GST as new taxes introduced this year have reduced the people’s spending power.
The former prime minister said the government must review current tax policies.
“Just this year alone, there were a few new taxes that were introduced and the existing taxes raised to a point that it lowered the rakyat’s buying power and impacted the economy multiplier generating cycle and return of investments.
“I’m confident that with the taxation system today, on top of the weakening ringgit, this will raise the rakyat’s cost of living due to the high dependency of the country on imported raw materials and food.
“I suggest that the government review existing aid to ensure that the people have more stable livelihoods,” he added.
On the depreciating ringgit, Ismail Sabri suggested that the government make Malaysia a shopping haven.
“Although the ringgit value has depreciated to point that it is affecting imported products, including food, at the same time, it has made Malaysia a country that is very affordable for tourists.
“The more affordable it is, the more tourists would come to Malaysia.
‘It will indirectly make Malaysia a country that is a main tourist destination and what more, Malaysia has its own uniqueness that is multiethnic and rich in nature, and it’s a modern city on par with a metropolis,” he said.
Last September, Economy Minister Rafizi Ramli said the government did not rule out reintroducing GST that was abolished in 2018 under the Pakatan Harapan administration.
However, he said the government would first prioritise its strategy to widen the nation’s revenue base while focusing on redeveloping and rolling out of the Capital Gains Tax, among others.
Prime Minister Datuk Seri Anwar reportedly said the country was not ready for the reinstatement of the GST in the near term.
