In GST's final days, 'Mat GST’ wants to set the record straight

PARLIAMENT | Ahmad Maslan (BN-Pontian), when debating the Sales Tax Bill 2018 in the Dewan Rakyat, admitted that he became a subject of mockery due to his spirited defence of the Goods and Services Tax (GST) when it was rolled out in 2015.

The Sales Tax Bill 2018, along with several other legislation, are meant to replace the GST.

"At that time, everything was GST's fault, everything was Ahmad Maslan's fault.

"Some even called me … Bagan Datuk called me “Mat GST”. Never mind, I want to explain that the price of goods is not only influenced by GST," he said, eliciting laughter from the floor.

Ahmad Zahid Hamidi (BN-Bagan Datuk) was not present in the House at the time. He is also the Umno president.

Ahmad, who was at the time the deputy finance minister, said he wanted to set the record straight over his defence of the GST when it was implemented, particularly on his comment that the tax could reduce the prices of goods.

"I want to defend myself. Some said - I said - that GST could reduce the prices of goods. I did not say that GST can reduce the price of all goods.

"I said GST could reduce the price of goods. Those were my words," he said.

Ministry confirmed the prices of goods went down

Ahmad Maslan added that the then Domestic Trade, Cooperatives and Consumerism Ministry had last year also confirmed to the Dewan Rakyat that the prices of 203 goods went down.

Furthermore, Ahmad claimed the implementation of GST prompted businesses to conduct sales, thereby reducing the prices of goods.

"Another thing that happened was that there were sales at many places. This is due to the psychology of GST.

"When the people perceive that GST will increase the prices of goods, they stop buying. When they stop buying, demand goes down and when demand goes down, businesses, particularly retailers, conduct a sale to survive.

"They had a 10 percent sale. What does a 10 percent sale mean? It means prices of goods go down by 10 percent. Some even had 80 percent sale. What does 80 percent sale mean? It means prices of goods went down by 80 percent.

"That is the meaning of a sale," he said.

Ahmad also claimed that car prices went down following the implementation of the GST.

Defending the GST, Ahmad said the system should be improved instead of abolished.

He proposed that the GST rate be reduced to three percent from the original six percent.

The GST was zero-rated since June with a view for abolition. The Sales and Service Tax (SST) is expected to replace GST effective September if it is approved by Parliament. - Mkini