Najib: GST needed to fund essential services

Prime Minister Najib Abdul Razak said that the government requires income from the Goods and Services Tax (GST) to provide essential services for the people.

"If we minus the GST, we are minusing more than RM50 billion a year and many of the services which we are providing today, we cannot implement.

"Imagine if in today's budget we minus RM50 billion, we will be left with RM20 billion. That's not even enough to pay allowances for civil servants," Najib told a press conference at Umno headquarters after chairing the party's supreme council meeting last night.

Without a steady income, Najib pointed out that the government will also be unable to build new schools, maintain national security, and provide scholarships, among other things.

"Their calculations are political, not based on facts and reality," he said when asked for comments on an alleged U-turn by Pakatan Harapan over its stand to abolish the GST if it takes over Putrajaya.

The News Straits Times on Sunday reported that Harapan would maintain the GST if it came into power in the 14th general election, although it would not maintain the current percentage.

The report, which implied Harapan had reneged on its promise to abolish GST, quoted PKR vice-president Nurul Izzah Anwar as saying that “zero-rated” GST is “in line with (Pakatan Harapan)’s pledges”

She, however, clarified that Harapan is consistent on its stance on the GST by committing to impose zero percent GST if the coalition comes to power.

Commenting further, Najib said it is not unusual for Harapan to make such U-turns.

"This U-turn is a usual thing for the opposition. It is not unusual.

"They will make many more U-turns. There is (someone who) U-turned three times on the same issue," he said without mentioning any names.

Najib had in the past launched a tirade against former prime minister Dr Mahathir Mohamad, describing the latter as "U-turn Mahathir" over the Bersatu chairperson's current stand on cooperation with DAP.- Mkini