Umno Youth wants GST back, Akmal floats 'Anwar Tax' rebrand

 

UMNO AGM | Umno Youth chief Dr Akmal Saleh has called for the goods and services tax (GST) to make a comeback to boost national coffers, while suggesting the government could give it a more personal makeover.

As long as the mechanism is unchanged, he said the government can rebrand the tax as “Anwar Tax”, after Prime Minister Anwar Ibrahim, or “Madani Tax”.

“When you talk about doing all sorts of things, there must be money for them. If the government has no money, it cannot implement them. We, the youth, are asking for GST to be reintroduced to replace SST (sales and service tax),” Akmal said in his policy speech at the Umno Youth assembly in Kuala Lumpur.

Akmal also recalled Pakatan Harapan’s “relentless attack” on BN over the GST, which he said contributed to the coalition’s defeat in the 2018 general election.

“Today, economic experts are saying GST is good… Umno Youth supports good things. If they want to change it to Madani Tax or Anwar Tax, go ahead and implement it,” he added.

The tax comeback pitch comes after Anwar said last month that the government was open to studying whether components of the GST could be folded into the existing SST system.

Anwar, who is also the finance minister, said SST should remain the base tax scheme, with GST-based adjustments potentially used to create a more progressive tax system.

Parliament had repealed the GST, introduced by Najib Abdul Razak’s administration, in August 2018, just two months after ousting BN from power.

Speaking in Parliament at the time, then finance minister Lim Guan Eng declared: "Finally, GST is dead."

Billions more in revenue

Meanwhile, Akmal highlighted that when GST was implemented, the government collected as much as RM44.3 billion in revenue annually.

He said this was more than double the estimated RM21 billion collected through the SST.

“Today, the SST is being raised and expanded little by little; the question is – how long do we want to keep patching up this system?” he added.

Akmal also questioned why Anwar remained reluctant to bring back GST if DAP leaders themselves acknowledged its benefits, with some also suggesting that it be reintroduced.

“Most recently, Kepong MP Lim Lip Eng of DAP suggested that GST be reinstated if it is more effective than SST.

“He said the government does not need to create a complicated hybrid system merely to avoid the name GST. If a DAP representative himself is now willing to mention GST, why is PMX still afraid of these three letters?” Akmal asked.

On Sept 5, Lip Eng (above) said it would be better for the government to bring back GST rather than integrate it with the SST.

He said the government should not devise a complicated hybrid tax system simply to avoid using the GST label. - Mkini