Najib: Govt income reduced by RM15bil without GST

PETALING JAYA: Pakatan Harapan’s decision to not collect Goods and Services Tax (GST) has reduced the Government’s income by at least RM15bil, says Datuk Seri Najib Tun Razak.

In a Facebook post, the former prime minister said that there was also a shortfall in income of RM8bil between September and December 2018.

“The Government will also have to pay back traders input tax of RM8bil for GST incurred on business purchases and expenses. That will total up to a loss of RM31bil this year alone,” he said.

On Monday (Aug 13), Finance Minister Lim Guan Eng stated that Barisan Nasional had “robbed” GST refunds, saying that the problem of unpaid tax was due to the weak cashflow of the previous administration, brought about by poor fiscal discipline and an increase in large debts.

On the same Facebook post, Najib said Lim should launch a police report over the missing amount of RM19bil and state that the money was indeed stolen by Barisan, as opposed to pointing fingers at the previous administration.

“The people should now be prepared for a variety of other new taxes from Pakatan Harapan following the abolition of the GST,” he added.

The 6% GST rate was zero-rated from June 1, while the sales and services tax (SST) will be implemented from Sept 1.

source:https://www.thestar.com.my/news/nation/2018/08/16/najib-govt-income-reduced-by-rm15bil-without-gst/