‘Pakatan might cut handouts if it abolishes GST’

PADANG TERAP: People risk losing aids and incentives from the government should Pakatan Harapan (PH) abolish the Goods and Services Tax if it comes into power.

Prime Minister Datuk Seri Najib Razak said people might not get the 1Malaysia People’s Aid (BR1M), besides being burdened with higher income tax, as the abolishment of GST would cost the country RM20 billion.

Najib said he feared PH would have to find ways to cover the losses by slashing government handouts and raising income tax.

He said PH might also stop incentives for padi farmers, aid to civil servants and the 1Malaysia Special School Aid.

“The World Bank has questioned PH’s capability and its manifesto.

“If GST is abolished, there will be a shortfall of RM20 billion in the government’s coffers, yet PH did not explain how it will make up for the losses.

“Maybe it will cut BR1M, which costs RM6.8 billion yearly.

“But, if that is not enough, maybe it will cut incentives for farmers and fishermen, the RM1,500 a year to civil servants and school aid (given by the government).

“I had announced to reduce the individual tax by two per cent, but if PH is in power, the tax may be increased by up to five per cent because it will need to cover the loss of income after abolishing the GST.”

He said this at a gathering with the Siamese community at Wat Chang Deng, Naka near here yesterday.

World Bank Malaysia country manager Faris Hadad-Zervos was reported as saying that Malaysia’s economy would likely face long-term negative effects if GST was abolished.

Last year’s GST collection was RM45 billion.

Najib said PH would need to explain how it would make up for the loss of income if it abolished GST.

On the Siamese community, he said the government had agreed to ease the enrolment for its students to Universiti Teknologi Mara (UiTM).

He said a directive would be issued to the higher learning institution’s administrator on the matter soon.

He said he would make sure that bright students from the community be allowed to further their studies at UiTM, similar to other Bumiputera students, as the government was inclusive in protecting the welfare of minority communities.

“There are problems for Siamese students to enrol at UiTM and I am correcting this by making sure that they have a place there.

“This is my promise. But, some people do not understand what I have said before, so I will issue an administrative letter.”

Najib said the government was working hard to protect the Siamese community so that they would not be left behind, starting from the school level.

One of the state’s 14 best students in Sijil Pelajaran Malaysia last year was from the Siamese community, while another was the national Sijil Tinggi Pelajaran Malaysia best student in 2016.

In 2012, Najib had said that the government would make sure the Siamese community received benefits allocated for Bumiputera.

There are 32,000 Siamese people in Kedah.

A large number of them are in the Padang Terap and Pendang parliamentary constituencies.