PM: No decision on GST for now

KUALA LUMPUR: The government is still studying whether to reintroduce the Goods and Services Tax (GST), says Prime Minister Datuk Seri Ismail Sabri Yaakob.

No decision had been made yet, he said.

“Many people started jumping when I said the government was ‘not ruling out the possibility’ (of reintroducing the GST), but I also said we needed to study the negative and positive aspects of it first.

“I did not announce the reintroduction of the GST. I just said we will look into it as studies have shown that there was a shortfall of RM30bil in revenue yearly after we moved from the GST to the SST (sales and service tax),” he told reporters after launching the World Environment Day celebration here yesterday.

Ismail Sabri added that it was important for the people to be properly informed of any new taxation system that the government planned to introduce.

“If we feel that the SST is no longer suitable, what are we going to replace it with? The people need to understand it first. We want our announcement to be accepted by the people.

“We have many more considerations to make. Would the effects of the GST lead to higher prices? Is it suitable to reintroduce the GST now or in a few years’ time?” he noted.

On flood mitigation, he said works were being carried out as a short-term measure to address flood occurrences in the country, with efforts including the construction of flood barriers in Kuala Lumpur.He said Federal Territories Minister Datuk Seri Shahidan Kassim had informed him that the flood barrier project to prevent flash floods had started.

However, Ismail Sabri said it was too early to gauge the effectiveness of flood barriers.

He also said climate change was causing erratic weather in the country, as evidenced by floods occurring in places that had never experienced them before.

“We used to be able to predict (the weather) such as the northeast monsoon, which happens between November and January, but now it can happen anytime.

“In Kuala Lumpur, heavy rain can unexpectedly cause flash floods,” he said, adding that in another 10 years, the situation could worsen.

“Because of this, we need to take care of the environment and achieve the zero carbon emission target by the year 2050,” the Prime Minister added.Ismail Sabri also said he would emphasise at the next Cabinet meeting that a new legislation on the environment be expedited.

“We believe it has been drafted by the Environment and Water Ministry because we have been talking about this for a long time,” he added.