Anwar: GST lifeline won't last if graft not stemmed

Although the Goods and Services Tax (GST) can help make up for the shortfall in the government’s revenue, Malaysia’s future would remain bleak until it stamps out corruption and wastages, said former opposition leader Anwar Ibrahim.

He said it is of no use if the government’s GST revenue rises if the people’s income do not rise as well, and reiterated Pakatan Harapan’s urging for a moratorium on GST.

“Economically speaking, since crude oil revenues are falling since the global oil prices are not increasing, GST can contribute to the government’s income.

“However, this contribution in principle would not brighten Malaysia’s future if the government’s governance and administration is not fixed; if corruption becomes worse; if leakages and wastages from government projects are not systematically and comprehensively reduced.

“What good does it do if the government’s GST revenue increases each year if the people’s income does not increase?

“If ten percent of employable youths could not find a job? If each month at the groceries, the amount that can be bought with RM100 is smaller?” said Anwar in a statement today, in conjunction with GST implementation exactly two years ago.

On several occasions, Prime Minister Najib Abdul Razak had conceded that GST is an unpopular policy, but is needed to make up for the shortfall in oil revenue due to falling oil prices.

He had claimed that without GST, Malaysia’s economy would be crippled.

Meanwhile, Anwar reiterated his claim that GST is a regressive tax that favoured the rich more than the poor, and would contribute to inequality.

He said GST should be put on hold by zero-rating goods and services, until wasteful practices and graft can be stopped and progressive tax policies are put in place.- Mkini