Government will not raise GST rate to cover lack of funding for PTPTN

Sep 24, 2017
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KUALA LUMPUR: The government will not raise the Goods and Services Tax (GST) rate to make up for the lack of funding for the National Higher Education Fund Corporation (PTPTN) and will study the issue to find a solution.

Prime Minister Datuk Seri Najib Razak said the lack of PTPTN loans is not just a problem among the Indian students but is also experienced by students from other races.

“I hear that Malaysians do not like to pay tax. They only love public holidays and good food but do not like to pay more taxes,” he said in his speech at the 71st MIC general assembly at Putra World Trade Centre (PWTC), today.

Najib, who is also the Barisan Nasional chairman said that he has been told that the Indian government imposed 28 per cent of Goods and Services Tax (GST).

“Please bear in mind that we (the Malaysian goverrnment) imposed Goods and Services Tax of only six percent but there is a lot of noise and anger at the government.”

Najib added the increase in the price of goods was not fault of the government but the traders who raised prices and then blamed the government for the problem.

“A total of 165 countries worldwide have implemented the GST, including India which imposed GST of 28 percent. As such, Malaysian Indians should not complain,” he said, greeted with laughter and applause from about 4,000 MIC members including 1,500 delegates.

The GST was first implemented in Malaysia on April 1, 2015 to replace the Sales Tax of 10 per cent and the Services Tax of 6 per cent. –Bernama