Najib: Abolition of GST has not led to lower prices of goods

KUALA LUMPUR: With goods not being cheaper post-GST (Goods and Services Tax), plans by the Pakatan Harapan Government to re-introduce the Sales and Service Tax (SST) will be a “double whammy” for the people, says Datuk Seri Najib Tun Razak.

The former premier said the recent abolition of GST by Pakatan hasn’t translated to cheaper goods and with the comeback of SST, the people’s burden will increase.

“This will be a double whammy for the people,” he told reporters at the Parliament lobby yesterday.

Najib also claimed that many Malaysians are disappointed that despite the zero-rating of GST, the prices of goods have not decreased.

“So Pakatan’s promise in its election manifesto to lower the prices of goods hasn’t been achieved.”

Asked to comment on the King’s support for the scrapping of GST, Najib said he will speak about SST in Parliament soon.

“Wait ... I want to provide other facts as well,” he added.

SST will be revived on Sept 1 after the necessary laws are passed in the current parliamentary meeting, with the sale of goods set at a 10% tax and services at 6%.

Rembau MP Khairy Jamaluddin said the Government should keep GST but at a lower rate as it is a more efficient tax system than SST.

He said the rate could be set at 3% to 4%, which would “effectively gives the same revenue as 10/5% SST”.

“SST is inefficient with many leakages,” he added in a tweet.

He also urged the Pakatan Government to approach the matter rationally, even though GST is a “big political issue for the Government”.

“Don’t scrap GST because of politics. Adjust the rate so its revenue neutral to your SST.

“Don’t let politics determine economic policy,” he further tweeted.