Reintroducing GST a bad move due to high cost of living, says Pakatan

PETALING JAYA: The Pakatan Harapan presidential council has rejected Prime Minister Datuk Seri Ismail Sabri Yaakob's proposal to reintroduce the Goods and Services Tax (GST) as the rate of inflation in the country remains high.

"People are already affected by the current high cost of living and lower household income as a result of the Covid-19 pandemic during this high inflation rate period.

"The problems with supply chains as well as non-increasing wages will put tremendous pressure on the people.

"It is unreasonable for the government to plan to collect more taxes from the people without first proving that reforms and improvements in government administration have been successfully implemented," the council said in a statement on Wednesday (June 1).

Meanwhile, the council also said there was a perception that the administration of the government had not fully been restored due to the 1Malaysia Development Berhad (1MDB) scandal.

"There is no point in collecting more taxes if the people's money is eventually wasted because of corruption, wastage and cronyism," he said.

The council reminded the Prime Minister that the majority of Malaysians had rejected GST in the last election.

The statement was signed by PKR president Datuk Seri Anwar Ibrahim, Parti Amanah Negara president Mohamad Sabu, DAP secretary-general Anthony Loke Siew Fook and Upko president Datuk Seri Wilfred Madius Tangau.

During an interview with Nikkei Asia in Tokyo recently, Ismail Sabri had suggested the reintroduction of the GST.