BAGAN DATUK, Apr 18 – The government has given an assurance that the country’s Goods and Service Tax (GST) of six percent will not be raised, even after the 14th General Election (GE14). Caretaker Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said this decision was due to the fact that the government had made a calculation and found that the existing rate was sufficient and would contribute to the country’s revenue of more than RM40 billion.
He said in the 2018 Budget the government also projected an increase in revenue from oil and gas to about US$70 per barrel from US$52 per barrel previously. “Revenue from oil, derived from the Petronas’ dividend is able to help the government to implement projects listed in the Barisan Nasional (BN) manifesto, apart from enabling the government to accommodate an annual salary increase of the public servants announced recently,” he said.
He said this at a media conference after attending a lunch at the Basha Restaurant, here today. Ahmad Zahid also said that the allegation over an increase in the GST rate has been spread by certain parties who deliberately want to undermine the people’s trust in BN.
He said the allegation was unfounded because the Finance Ministry and the Bank Negara did not see any need to raise the existing rate. “Our revenue is not only sufficient, but could also accomodate the budget that has been announced. It is also more than adequate to see us through for the next five years,” he said. — Bernama