PM insists GST revenue will be returned to the people

Najib Razak also says the people must understand that the GST is a more efficient and effective tax system.

PUTRAJAYA: Revenue from the Goods and Services Tax (GST) will be returned to the people and its details tabled in the next Budget, said Prime Minister Najib Razak.

Najib, who is also Finance Minister, said this way, the people would gain from the 6% tax that was introduced on April 1 as a long-term measure for the good of the economy and people.

“We have to inform (the people) about additional revenue, how we are using it.

“We are collecting (GST) for the benefit of the people, we will return it to the people.

“These are short-term challenges that must be faced,” he said at the Finance Ministry’s monthly assembly here today.

The GST was implemented on April 1 at a rate of 6% to replace the Sales and Service Tax (SST) which was generally at 16%.

Realising there were some grumblings from the people on the GST implementation, Najib said relevant authorities must monitor the situation by obtaining public feedback.

“The information is to see if their grumblings have any basis or was caused by certain quarters taking advantage (of the situation) by maintaining the sales prices with an additional six per cent even though the SST had been abolished.

“When the SST was abolished and replaced by the GST, traders should reduce their prices and add 6%. What happened is they maintained the prices and added another 6%,” explained Najib.

He said the government would ask the relevant authorities, particularly the Domestic Trade, Cooperatives and Consumerism Ministry to launch comprehensive and ongoing enforcement.

The cabinet had also decided that profiteering-related offences be brought to court soon.

– BERNAMA