GST necessary: Malaysian PM
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Malaysia has to choose between either increasing government revenue via the goods and services tax (GST), or burdening the country by borrowing more money.
Prime Minister Najib Tun Razak said the implementation of GST was necessary as the country risked becoming bankrupt like Greece if it resorted to borrowing.
“We have to find additional sources of income and that’s why we have to implement the GST,” he said at a seminar on “Strengthening the National Economy”.
He said rating agency Moody’s Investors Service changed their outlook on Malaysia from neutral to positive just weeks after the GST was announced.
“This is because they know Malaysia was taking fiscal consolidation steps, which are unpopular, but necessary for the good of the country,” he said.
Najib lashed out at the opposition for their mixed comments about whether they supported the GST and for clouding the issue with unfair arguments, such as pointing out the high electricity bill of his official residence,
He said the Seri Perdana (official residence of the prime minister) belonged to the people of Malaysia and that he was occupying it temporarily just like his predecessors. “It has a function room. If a head of state comes, are we expected to dine in the dark?
“If the Chinese premier comes, should we use candlelight and say this is more romantic?” he quipped.
Najib said of an total workforce of 14 million, only 1.34 million paid income tax. “That is just 10 per cent who pay, and there are others who should pay but don’t,” he said.
He pointed out the definition of patriotism is fulfilling one’s responsibility to the country and this included paying taxes.
He added that the public’s expectations were always increasing, and more revenue was needed to meet these demands.
