Deputy International Trade and Industry Minister Ahmad Maslan has defended his claims that prices would go down under the Goods and Services Tax (GST) scheme implemented since April last year.
He said at the time, when he was the deputy finance minister, he had used the term 'could' (boleh) rather than 'would' (mesti), and was merely explaining how prices of some goods could go down under GST because of its differences with the Sales and Services Tax (SST) system that was then in force.
For example, imported fruits are taxed at five percent under SST, but is zero-rated under the GST.
As for many household goods ranging from clothes to furniture and building materials, he said these were previously taxed at ten percent under SST, but only six percent under GST – a four percentage point reduction.
Ahmad also pointed out that on April 1, 2015 when GST came into force, the price of cars had indeed fell because of this.
“That is what I meant. But the prices of clothes didn't go down; tables and chairs didn't go down; furniture didn't go down; sofa didn't go down; electrical goods didn't go down.
“Don't blame Ahmad Maslan for it. Blame the traders who refused to lower the prices, not Ahmad Maslan.
"Ahmad Maslan who got whacked is not at fault. He was merely explaining what is correct in the theoretical aspects of GST,” said Ahmad, referring to himself in third person.
Ahmad was acting as moderator at a briefing session in Kuala Lumpur about the Trans-Pacific Partnership Agreement (TPPA) today, where a member of the audience commented that while GST and TPPA are both good policies, poor enforcement have led the people to reject it.
In particular, the audience member highlighted Ahmad's claim of lower prices under GST as an example, saying that these promised lower prices are still not apparent even nine months after its implementation.
The briefing session attended by a full-house crowd of over 300 people.
Ahmad also chided TPPA critics for not showing up to question International Trade and Industry Minister Mustapa Mohamed, who was the main speaker at the event.
He opened the questions and answer session by inviting those who oppose TPPA to ask the first questions, but no one stepped up.
“I wish to open the first question to those to oppose (TPPA), those who want to hold a demonstration on the 23rd of this month.
“So I have given a chance to these NGOs. The invitation has already been sent to those who brought the matter to court and all that.
“I have ensured that the fax has been sent. I hope they are in this hall,” he said.
Nothing to hide
Mustapa added that he has nothing to hide, and what is important is to explain TPPA to the people.
He pointed out that when he was speaking at Universiti Sains Malaysia on Jan 9, about 40 people came to protest the trade agreement.
Of these, six came into the briefing after being invited, and two of them had asked questions.
Speaking to reporters after the briefing, Ahmad conceded that the anti-TPPA activists may have been amongst the audience, and some of the questions asked seem to suggest this.
He said the audience only identified themselves by name and place of residence when asking questions, and the registration forms are not very detailed in identifying the audience members' affliations.
Asked which anti-TPPA groups were invited, Ahmad said he would need to check with his officers on this.
Malaysia is slated to debate the controversial trade agreement in the Dewan Rakyat and the Senate over three days starting on Jan 26.
If passed, it will be signed next month.
PAS and Parti Sosialis Malaysia had announced that they would hold a protest against the agreement on Jan 23 at Dataran Merdeka.
The group Angkatan Belia Islam Malaysia had tried to mount a legal challenge Malaysia's move towards signing the agreement, but this was dismissed by the Kuala Lumpur High Court on Jan 12. --Mkini
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