Nazir Backs Restoring Gst In The Right Way


 


Imposing the goods and services tax (GST) is the right way forward, said banker Nazir Abdul Razak, but only if it is implemented “in the right way”.
Speaking at a programme in Kuala Lumpur today, Nazir (above) said Pakatan Harapan made a mistake when they removed GST after taking power in 2018.
“Firstly, GST is the right way forward. But it has to be implemented in the right way.
“It was the mistake of Harapan to remove the GST. They should reduce GST and give more exemptions to the lower-income (group).
“But it (GST) is something necessary in the long term,” Nazir told the audience at a talk session to introduce his book ‘Di Sebalik Nama’ during the Kuala Lumpur International Book Fair 2022 at the KL World Trade Centre.
Nazir was answering a question from the floor regarding Prime Minister Ismail Sabri Yaakob’s recent statement that the government was keen to reintroduce GST.
The taxation system was introduced in 2015 during Najib Abdul Razak’s time as the prime minister but was zero-rated as soon after Harapan took hold of the federal government three years later.
In his speech, Nazir said Putrajaya should revisit how it taxes the people, given the current situation where the rakyat is facing rising prices of goods and suffering from the effects of the Covid-19 pandemic.
He suggested that the government tax the wealthy more, including imposing a windfall tax.  
“Many countries realise this, (that) if they don't increase their income, their taxation, then we can’t help the poor.”
Polls won’t necessarily affect economy
Meanwhile, during a press conference later, Nazir was asked whether the country’s economic situation would worsen should a general election be called anytime soon.
To this, he said holding an election would be a distraction, but it would not necessarily affect the economy.
“I think many things determine the timing of an election and we leave it to the prime minister and others to decide.
“Effect on economy? Today we have many challenges, but we know that at some point we have to have an election anyway.
“I don’t think it (election) necessarily affects the economy. I think it’s a big distraction, but you have to have it anyway.”
Earlier this week, Ismail Sabri told an interview that he will wait “for the right time” to call for snap polls, citing economic concerns.
He told financial newspaper Nikkei the country is facing inflation and rising prices of goods at the time being. - Mkini


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