GST needed to break reliance on oil and gas revenues, says minister.
He said new financial resources were needed as the government needed to pay for civil servants’ salary and pension payments to an increasing number of retirees.
“As for now, our financial resources rely heavily on oil and gas, but we can’t continuously depend on this sector, that’s why we need the GST as a new source of finance,” he told reporters after opening a forum on development in Kelantan in the 11th Malaysia Plan.
He said some might oppose the government’s initiative to introduce the GST but they should use the proper channels and not do anything to disrespect the authorities such as the police or Customs,
“The decision (to implement the GST) was not made in a rush, we did the research for over a decade; if the GST is not implemented, how will we pay government staff salaries or pay the pensioners and how will we develop the rural areas,” he said.
Mustapa, who is also chairman of the Kelantan Federal Development Action Council, said he hoped the federal government will allocate a bigger budget in the 11th Plan to further develop states like Kelantan which were lagging behind.
“We hope that the financial resources are distributed according to the level of achievement in terms of economic growth and poverty rates. We are aware of the fact that Kelantan is under the opposition (PAS), but this does not mean that the rights of the people should be deprived,” he said.
At another function Mustapa urged the state government to enhance its cooperation with the federal government. Cooperation in handling the flood last December and in post-flood recovery had been excellent, he said.
He hoped the state government could give similar cooperation in developing the economic sectors in the state.
– BERNAMA
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