Prime Minister of Malaysia Mahathir Mohamad had a hard-line stance against the potential revival of the Goods and Services Tax (GST) that the government said it could consider bringing back to the table.
According to Business Insider, Mahathir said there is no such plan to consider the GST's comeback under his regime. He added that the current Sales and Services Tax (SST) is enough for the people.
For Mahathir, the SST can result in more profits for the Malaysian economy in the near future as opposed to the income that the GST can bring around. Furthermore, he was quoted as saying that while "there is a shortfall in the collection," it doesn't mean the SST "is a mistake."
Mahathir went on to defend the SST, stating that the expected RM20 billion in shortfall would be a result of adjustments made by both taxpayers and collection officers who have yet to get used to the taxation system.
Finally, Mahathir noted that the SST is doing well, finishing his statement with a firm stance that the GST has already been "rejected by the people." Other outlets said the Prime Minister also said he is against frequent changes to the tax system as it could have a negative impact on investor confidence.
The Star Online reported that reported earlier this week that former international trade and industry deputy minister Datuk Seri Ahmad Maslan offered to be a consultant to the Malaysian government at no cost. Ahmad reportedly suggested that the GST should be recovered.
Ahmad went on to say that he is "confident" of the right decision made by 170 countries that implemented the GST. Other government officials reportedly support the potential return of the GST but it remains to be seen how Mahathir will handle the urging of other officials.
While there is increasing support for the potential return of the GST, others have echoed Mahathir's statements. Deputy President of the Federation of Malaysian Consumers Associations (Fomca), Mohd Yusof Abdul Rahman, noted that there are certain considerations to be put in mind before the GST is brought back.
According to the Malay Mail, Yusof argued that it will prove challenging to change the Malaysian masses' perception of the Goods and Services Tax. It is worth noting that many citizens expressed disappointment over the GST.
Yusof further explained that the GST had a "burdening" impact on the people as it resulted in higher prices of various goods and services. He said that if the government pushes through with the plan to revive the GST, the rate of six percent should be adjusted to lessen the burden on the Malaysian consumer.
