PM says now’s not time for GE, moots GST instead

PETALING JAYA: Rising food prices and the cost of living are factors to consider in determining the right time to call for a general election, says Prime Minister Datuk Seri Ismail Sabri Yaakob (pic).

“We are now facing a period of increasing inflation with high prices. As such, do you think this is the right time (to hold an election)?” he said when speaking to Nikkei Asia in Tokyo.

The Prime Minister was insistent that the 15th General Election (GE15) should not be held until the country could control inflation, despite speculation that it would be held before the end of the year.

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Bank Negara Malaysia expects headline inflation to average between 2.2% and 3.2% this year.

Ismail Sabri said GE15 could not be delayed past the timeframe set in the Federal Constitution, but holding it early would require a second look at the current situation.

He also said he was a “party person” and would have to adhere to Umno’s decision as well as that of the Cabinet.

To expand its revenue base, the government was keen to bring back the goods and services tax (GST).

Ismail Sabri said the government was aware of the negative perception towards GST but there were limited options for replenishing the federal coffers. The government would also formulate ways to educate the public on the importance of GST and transparent tax collection if GST was reintroduced, he said.

“The government will aim for a rate that is not so high that it burdens the people, but not so low that it defeats the purpose of expanding tax revenue.

“The government is also working on a subsidy rationalisation programme aimed at providing targeted assistance to low- and middle-income households and a comprehensive plan will be submitted to the Cabinet for deliberation soon,” he added.