PUTRAJAYA: Pakatan Harapan's (PH) aim of replacing the Goods and Services Tax (GST) with the previous Sales and Services Tax (SST), as stated in their election manifesto, will make Malaysia a ‘deficit country’.
Prime Minister Datuk Seri Najib Razak said the idea to scrap the GST and implement the SST system would affect the economy and increase the national debt.
"The opposition said they want to abolish GST and replace it with SST. They just want to fool us because if we did not manage to collect RM45 billion (in GST last year) , Malaysia will become a deficit country.
"The national debt will increase and we would be in a similar situation to Greece and Italy.
"There will come a point when this (abolishing the GST) will jeopardise the economy and cause the people to suffer," he said.
He was speaking at the Welfare Association of Wives of Ministers and Deputy Ministers (BAKTI) and Siswa programme at Seri Perdana, here today. The event saw the attendance of more than 400 students from various universities nationwide, Bakti volunteers and wives of ministers and deputy ministers.
Present was his wife Datin Seri Rosmah Mansor, who is also Bakti president.
On Thursday, PH launched its 200-page manifesto, which centred on five pillars and 60 promises to be fulfilled by the PH-led government, should they win the upcoming 14th General Election.
One of the main thrusts of its manifesto was to scrap the GST and replace it with the SST.
Najib said the opposition has failed to explain the theory on the implementation of GST and SST.
“It is easy to campaign here and there about abolishing the GST but they (opposition) don’t know how to explain the theory. Therefore, the younger generation, who possess high intellect, should explain to others that GST is the best tax for the country, ” he added.
He said more than 160 countries have implemented GST, which is proven to be an effective and progressive tax.
“We collect over RM40 billion annually (through GST), and we later return this to the people. We give them the 1Malaysia People’s Aid (BR1M), subsidise local universities and health services, and many more,” Najib added.
Najib said younger generation must have a global mindset yet still emphasise on the importance of religion and local culture.
Najib reiterated that Barisan Nasional will create a special manifesto for young people that will include various programmes and address their needs.