GST sentiment caused BN to lose, not price of goods, says former minister

The former KPDNKK minister says he now wants to see how PH will be able carry out its election promises without the revenue from GST.

The controversial GST brought RM44 billion in revenue in 2017 and is to be replaced with SST.

PETALING JAYA: Barisan Nasional’s loss in the polls had nothing to do with prices of goods but was due to the ground sentiments on the goods and services tax (GST).

Former Domestic Trade, Cooperatives and Consumerism Minister Hamzah Zainudin said the PH government wants to abolish GST.

But he warned PH it will then be short of RM44 billion annual revenue from GST.

“And if that happens, how can they give certain things to the people?” he said after a closed-door meeting with BN chairman Najib Razak.

Hamzah was asked if the cost of goods was one reason for BN’s loss in the 14th general election.

He said PH might have promised things that might not be easy for them to carry out.

Hamzah declined to comment further on what caused prices to go up.

The BN government had said GST had made up for the sharp drop in oil revenue and had paid for transport projects like the MRT or LRT and also the 1Malaysia People’s Aid (BR1M).

Economists had various explanations for the rising cost of living, including GST, global currency fluctuations and profiteering by businessmen.

PH had claimed it will plug leakages and review certain projects to make up for the shortfall in revenue when they scrap GST.

It said it would go back to the previous sales and services tax (SST) regime which had brought in revenue of RM17 billion in 2014 before it was scrapped and replaced by GST on April 1 the following year. -FMT