PAS urges GST cut amid rising inflation

In view of rising inflation, which reached a high of 4.5 percent in February, PAS urged the government to reduce the Goods and Services Tax (GST) rate to cushion the rakyat from rising prices.

"PAS urges the GST rate to be reduced in line with the rising inflation. Since inflation rose 1.3 percent in February from January, it is only appropriate that GST be reduced from 6 percent to 4.7 percent," said its deputy president Tuan Ibrahim Tuan Man.

He added that the rise in inflation was not surprising given that with the recent record increase in the prices of fuel and its cascading effect on the price of goods, which could only end with the rakyat having to pay more.

Tuan Ibrahim also warned that the actual prices of goods were actually higher as the increase in the cost of essential goods would translate into higher expenditures for all consumer goods down the line.

The PAS deputy president took a swipe at the government's plan for weekly fuel price announcements, which he said was not a holistic solution to the issue of reducing the cost of living for the rakyat.

He said he was concerned that the government's experiment with the fuel ceiling price would be used as an excuse to charge GST for fuel purchase under the pretext of preventing abuse.

In any case, he argued that reducing the GST rate in line with inflation could stabilise the rakyat's purchasing power and reduce the pressure on the lower and medium income groups.

"PAS reiterates that reducing the GST rate in line with increasing inflation will not reduce government earnings from the consumption tax, as the increase in the prices of goods will compensate for the reduction," he concluded.

Currently Malaysians have to pay 6 percent of GST. Yesterday, Bank Negara Malaysia announced that Malaysia's inflation for last month was 4.5 percent, the highest in eight years.- Mkini