Mahathir should explain the economy impact if GST abolished and replaced with sales tax

 |Jan 17, 2017

 

GST

A political critic has called on Mahathir Mohamad to give guarantee to all Malaysians that cost of all goods and services would decrease drastically once the Goods and Services Tax (GST) was abolished and replaced with a new form of sales tax.

Azizi Safar also wants Pribumi party chairman Mahathir to explain on its impact on the country’s economy especially in view of the current erratic global oil price.

“It’s important for Mahathir and the opposition to explain this to the public,” Azizi told Malaysia Outlook today.

During the official launching of his party, Pribumi in Stadium Melawati, Selangor on Saturday night, Mahathir has announced that GST would be abolished if if the opposition were to take over the federal government after the next general election (GE14).

Mahathir said GST would be replaced with a new sales tax.

He also announced that BR1M would be made statutory cash aid to people if the opposition wins GE14.

Previously Mahathir has criticised the Bantuan Rakyat 1Malaysia (BR1M) as a “bribe”.

Mahathir sudden u-turn on the issue has provoked many, including Prime Minister Najib Razak to described the former premier as a ‘champion of u-turns.’

“Malaysians have the right to know what would be the impact on Malaysian economy and prices of goods and services once GST has been abolished and replaced with Mahathir’s sales tax,” said Azizi.

BR1M payouts have been of a great help to Malaysians of lower income group.

BR1M payouts have been of a great help to Malaysians of lower income group.

Azizi┬ásaid Mahathir’s endorsement on BR1M clearly showed the former premier had realised that “money matters for the people”.

Referring to statement by prominent economist K.S. Jomo, he said Mahathir also realised that BR1M had been a major success for Najib’s administration.

Jomo has said that BR1M was among Najib’s major successes mainly due to the fact that labour unions and NGOs and opposition parties have had campaigned for decades for some kind of improved social provisioning.

“This could be the reason why Mahathir dare not abolish BR1M,” said Azizi.

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Athi Shankar has been a journalist for past 30 years. He believes that democratic rights come with responsibility.