PETALING JAYA: The sales tax will be brought back to replace the current Goods and Services Tax (GST) if Pakatan Harapan succeeds in taking over Putrajaya in the next general election (GE14), according to its chairman Tun Dr Mahathir Mohamad.
Tun Mahathir who had earlier said that the GST will be abolished should the Opposition coalition wrest Putrajaya from Barisan Nasional in GE14 pointed out that it would be very bad for the Pakatan Harapan government without a revenue source hence the need to replace GST with the sales tax.
“GST replaced the sales tax, so if we abolish GST, the sales tax needs to be reintroduced.
“If you suddenly abolish and have no source of income, that will be very bad for the Government,” he said, as reported by the Star Online.
Tun Mahathir said this in a panel discussion hosted by an online news portal which also saw the participation of DAP adviser Lim Kit Siang.
Meanwhile, Dr Mahathir admitted that Malaysia’s revenue was lower during his 22-year tenure as prime minister compared to revenue now.
When asked about Prime Minister Datuk Seri Najib Razak’s recent remark that the Government would not have enough funds if GST was abolished, Dr Mahathir admitted that during his time, companies were not making much money but presently they are generating more income.
“So, when they make billions in profits now, 26% of the profits belong to the Government so the current government does have more money than during my time so why the need to impose GST and claims there’s not enough funds?” asked Dr Mahathir.
Dr Mahathir also did not totally discount possibilities that both he and Lim might contest in GE14, when asked.
The Parti Pribumi Bersatu Malaysia (Pribumi) chairman reasoned that this was because there could be a sudden need to contest to which Lim replied “possible, possible”.
Dr Mahathir said he however has no intention to contest or be a candidate again.
Admitting that there are some trouble between the Opposition and PKR due to its indecisiveness in opinion on the cooperation with PAS for the general election, Dr Mahathir said:
“We are having a little problem with PKR because (PKR adviser) Datuk Seri Anwar Ibrahim has said that they should continue to speak with PAS.”
He also said that an extra party in the Opposition pact would only make seat negotiations harder, therefore the Opposition has collectively decided not to collaborate with PAS. – MO