A reduction on the GST rate is not on the cards in the upcoming budget proposal for the year 2017, said Finance Minister II Johari Abdul Ghani.
However, he was coy when asked if there would be any changes to other forms of taxation, such as income tax and corporate tax.
“At this moment, I don’t think we will do any changes on GST, because we have introduced GST - I think - less than two years (ago).
“We want the system to be embedded in entire consumer spending system, so there should not be any changes,” he told reporters in Kuala Lumpur today.
He was asked whether there would be a reduction in the GST to stimulate consumer spending, since reduced interest rates have failed to achieve this.
Bank Negara last reduced the Overnight Policy Rate (OPR) on July 13 by 25 basis points to three percent, making it cheaper to take out loans.
When asked if other taxes would be reduced, Johari pointed out that the tabling for Prime Minister and Finance Minister Najib Abdul Razak’s budget proposal would be soon.
“Wait for the budget, just wait a little more. (Otherwise) there would be no suspense.
“That one, I think, you’d have to allow the prime minister to make a call on that,” he said.
Najib is slated to table his budget proposal to the Dewan Rakyat on Oct 21 at 4pm.
Asked if the government was doing anything to stimulate the economy, Johari pointed to various ongoing infrastructure projects, such as MRT, LRT, High-speed Rail, East Coast Rail Line, and the Pan-Borneo Highway.
“That is basically infrastructure, to stimulate the economy. If you total up all this, I think it is more than RM150 billion.
They will also benefit our future generations. Maybe our generation may not be able to use them, but future generations (will),” said the 52-year old minister.
To another question on whether Malaysia was on target to reduce its fiscal deficit to 3.1 percent of Gross Domestic Product (GDP), down from 3.2 percent last year, Johari replied, “Should be, should be.” -Mkini
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