KUALA LUMPUR: The Federal Government has dismissed suggestions that proceeds from the Goods and Services Tax (GST) will go to paying off interest on debts, creditors or bonds.
“Such accusations about the money going to paying creditors are untrue. The proceeds from GST will be put into a consolidated fund,” Deputy Finance Minister Datuk Ahmad Maslan (pic) told reporters at Parliament lobby on Tuesday.
He said that the GST taxed from the public would be then returned for the benefit of the people.
Earlier, former Finance Minister Tengku Razaleigh Hamzah had questioned where the Government income from GST would go.
The Gua Musang Barisan Nasional MP, who is also a veteran Umno lawmaker, said that the GST proceeds should go to helping the people and not to be used to pay off interest, creditors or bonds.
It was speculated by a number of Opposition figures that GST proceeds would be used to pay off 1MDB debts.
GST will come into effect on April 1.
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