Pakatan Harapan has said many times that if it wins the upcoming 14th general elections, it will abolish the Goods and Services Tax (GST).
But does the opposition realise how helpful GST has been to the country?
And what would the opposition replace the GST with?
Here are several reasons why GST must not be scrapped.
GST must be implemented because oil prices are declining
Pakatan Harapan’s suggestion to abolish GST is easier said than done.
This is because once upon a time, oil prices was at above US$100 per barrel.
But now it has gone down to US$40 per barrel.
So Petronas’s income has gone down by 60 percent.
When Petronas income has gone down, so will the government’s income.
This is because the government get royalty payments from Petronas.
And Petronas pays the government oil royalties at RM20 billion, RM30 billion and RM40 billion per year.
If Pakatan Harapan does not want to implement GST.
How will it collect the money?
How will it fund infrastructure projects such as roads, schools, bridges and so many others?
Pakatan manipulating the GST to lie to the rakyat, win votes
Datuk Seri Najib Razak said Pakatan Harapan is manipulating the rakyat by telling them that once they come to power, they will abolish the GST.
Utusan Malaysia reported on August 5 that the opposition led by Tun Dr Mahathir Mohamad is so adamant on bringing down Barisan Nasional.
But Tun Mahathir is not being rational and emotional without thinking straight.
“Pakatan Harapan should realise that without oil revenues, the country’s economy will be paralysed and the rakyat will suffer,” said Datuk Seri Najib.
Pakatan Harapan’s promise to scrap GST is merely rhetoric
Pakatan Harapan’s promise to remove the GST if they win the 14th general elections is just mere rhetoric.
Minister in the Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan said Pakatan Harapan has not really explained on how they would balance the budget deficit and finance government projects.
In a Bernama report on July 4, Abdul Rahman said the rakyat would want Pakatan to explain ways on how to cover the hole in government income.
It is easy to talk, but there is a hole there and how will Pakatan Harapan close it?
Pakatan Harapan need to explain to the rakyat.
Pakatan Harapan is always flip-flopping
Pakatan Harapan is never consistent and is always flip-flopping.
DAP secretary general Lim Guan Eng said that he will abolish GST if Pakatan Harapan wins the next general elections.
Opposition leader Datuk Seri Dr Wan Azizah Wan Ismail had also said in 2015 that the opposition would propose to abolish the GST in its alternative budget in 2016.
Tun Mahathir Mohamad during PPBM’s launch early this year said the GST will also be abolished and be replaced with a sales tax according to the rakyat’s will.
Pakatan Harapan even held and Anti GST rally in April.
And then suddenly out of the blue – PKR vice president Nurul Izzah Anwar said on April 23 that Pakatan Harapan will maintain the GST if it comes into power.
But Pakatan will impose a GST of less than 6 per cent.
Why the flip-flop?
Its nice to make sweet promises, but where are you going to get the money?
Lim Kit Siang said if the opposition wins the 14th general elections, it wants to scrap GST and even scrap toll collection at the North South Highway.
But in reality, where is Pakatan Harapan going to get the money?
If Pakatan wants to scrap toll at the North South Highway, they need to pay the highway concession companies compensation.
Where is Pakatan going to get the money?
Its nice to pepper sweet promises to voters to fish for votes.
But in reality, Pakatan Harapan would need as much money as Baraisan Nasional in order to manage the country.
And part of that money, comes from the GST.
Without the GST, our economy and the rakyat would be in trouble by now.
GST has saved the country
The GST has saved the country from economic crisis.
Now that the oil revenues which makes up 40 percent of the country’s income have come down, Government revenue collection is just not enough.
GST has helped the government pay salaries of 1.6 million civil servants, pay BR1M and build schools, roads and bridges for the rakyat.
A total of RM42 billion was collected from the GST in 2016 and this has saved the country.
In a New Straits Times report on May 23, Datuk Seri Najib also took the opposition to task for fooling the people, by claiming that if they formed the government, GST would be zero-rated or abolished.
“Then let me ask, if the opposition seeks to implement zero-rated (GST), where are they going to source the RM42 billion? asked Najib.
GST is also proven to be an effective system widely implemented in more than 130 countries.
The world is going through tough times right now and the GST has saved Malaysia.
The rakyat should not be duped by Pakatan Harapan.