PUTRAJAYA: The Prime Minister has directed all government departments to cease using imported goods, particularly at official events, in a bid to promote local products.
Datuk Seri Anwar Ibrahim said using local produce will not only bolster the local economy, but will also open wider opportunities for local farmers to market their goods.
“If every government department follows this directive, it will create more opportunities for our farmers to supply local food ingredients,” he said at the Finance Ministry monthly assembly.
He cited neighbouring countries as examples, noting their firm commitment to using local food products at all official functions.
“In Laos, Vietnam and Thailand, I’ve never been served imported food at any government-hosted official event.
“It’s automatic for them to ensure only local food is served,” he said, Bernama reported.
On the Goods and Services Tax (GST), the Prime Minister said while it is an efficient and transparent taxation system, it is not yet suitable for re-implementation because the rakyat’s income threshold is still low.
Anwar said the ability of lower-income people must be taken into account first because the taxation system has a comprehensive impact.
He said the reimplementation of the GST should only be considered when the average income of the people has increased to a more reasonable level of at least RM4,000 a month.
“Right now, there are people earning RM1,700 or RM2,000. Let the people’s income increase first. Let’s say the minimum salary is RM4,000 (a month), maybe at that time, we can (implement it).
“Maybe I was not wise in making this decision, but my intention is not to introduce taxes that will be detrimental to the lower-income people,” he added.
Based on this view, Anwar said the government chose to implement a more targeted Sales and Service Tax, from which the revenue would be used to increase allocations to key sectors of the country such as education and health.
