KUALA LUMPUR: Bagan member of Parliament Lim Guan Eng has urged the government to review the two per cent service tax hike and the high-value goods tax.
The former finance minister said the government should postpone tax measures that burden the people, at least until the economy improves.
"We do not yet know if the economy will recover by the end of this year, including the value of the ringgit, which is expected to recover in the second quarter of this year.
"It is hoped that the matter can be reconsidered and reviewed, including the sales and service tax (SST), which increased from six to eight percent," Lim said while debating the King's speech in the Dewan Rakyat.
Meanwhile, Lim, who is the DAP chairman, said the opposition should recognise that the unity government cannot be solely blamed for the state of the economy.
"If the opposition, including Pagoh (Tan Sri Muhyiddin Yassin), criticises the unity government for its alleged mismanagement of the economy, they should remember that Fitch Ratings downgraded Malaysia's credit rating during Muhyiddin's tenure as prime minister," he said.
He said he believed the unity government would work towards strengthening the value of the ringgit.
Lim also said financial experts and economists have said the ringgit's depreciation is not as severe as portrayed by the opposition, as the country's credit rating was not downgraded.
"This is not the same as the situation where the country's credit rating was downgraded by Fitch Ratings in December 2020.
"The credit downgrade during Pagoh's tenure as prime minister was more serious because it reflected a more worrying economic performance to the extent that people were waving white flags for help."
Lim also proposed the establishment of a national reform congress to highlight the government's commitment to economic and political reforms.
"A national reform congress that encompasses all is necessary so that no community feels marginalised or neglected," he said.