The Goods and Services Tax (GST) will only be implemented once Malaysians' income levels reach a more comfortable threshold, says Prime Minister Datuk Seri Anwar Ibrahim.
Speaking at the Associated Chinese Chambers of Commerce and Industry of Malaysia's (ACCCIM) 78th annual general meeting on Sunday (Oct 13), Anwar, who is also Finance Minister, emphasised that implementing GST at this time would go against his political philosophy and conscience.
He added that broader economic reforms are necessary, stressing that issues like corruption and the abuse of political power must be resolved before considering the reintroduction of GST.
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Speaking at the Associated Chinese Chambers of Commerce and Industry of Malaysia's (ACCCIM) 78th annual general meeting on Sunday (Oct 13), Anwar, who is also Finance Minister, emphasised that implementing GST at this time would go against his political philosophy and conscience.
He added that broader economic reforms are necessary, stressing that issues like corruption and the abuse of political power must be resolved before considering the reintroduction of GST.
Read more at https://shorturl.at/o7Wik
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00The Prime Minister to deliver a speech and then to officialize the Agong Tahun Day meeting
00:07I have seen subsidies.
00:10This is important because
00:12there is no country in the world, as far as I know in Asia,
00:15there is no country that gives as much subsidies as in Malaysia.
00:24Tan Silo uses a big Mercedes,
00:27but there is oil subsidy.
00:33So if I take subsidies,
00:36we don't increase the cost, we just take subsidies.
00:38Subsidies for the poor.
00:40He doesn't complain.
00:41Not yet, he hasn't complained yet.
00:44So, the subsidy is diesel.
00:47But if the implementation has a little problem, we change it.
00:52I'm not saying it's perfect.
00:55Where we need to make the necessary adjustments, we will do.
01:00But the waste cannot continue.
01:03Look at the issue of chicken.
01:05How much is the general handout through subsidy every year?
01:09It's 1.2 billion ringgit.
01:12Have we withdrawn that?
01:14No, we have not seen an increase in the price of chicken.
01:19Because if we continue to give subsidies like this,
01:23it does not even benefit the poor.
01:26That is why I have an issue about GST.
01:29I agree.
01:30It is the most transparent, efficient system.
01:33All the big companies want GST.
01:39But, please remember, I said yes,
01:43but let the level of income, the threshold, rise first.
01:50Give some time.
01:52Push the economy forward.
01:54Because you implement GST now,
01:57means you get everybody to pay.
02:01I mean, this is my political philosophy, my conscience.
02:06Is it efficient? Yes.
02:08Is it transparent? Yes.
02:10Will the government get more revenue? Yes.
02:13But who are you taxing? Everyone.
02:16The rich? Yes.
02:17The poor? Yes. I can't.
02:21So what is my view?
02:23I said, look, give some time.
02:25Give a few years.
02:27Make sure that the threshold, the level of income, increases.
02:323,000, 4,000 ringgit minimum,
02:34then we can gradually adjust this policy.
02:39Countries that have implemented GST normally,
02:42including our neighbours,
02:44have got their level of income risen first.
02:48So that is the only issue that I have.
02:50I understand the issue.
02:52I have studied for decades.
02:54The first time that we talked about GST
02:58was when I was finance minister.
03:00And what was my statement?
03:01The most efficient, transparent system
03:04that would be advantageous to the government
03:08in terms of revenue collection.
03:11But what was my answer then, in the 1990s?
03:14Give some time.
03:17Push the economy forward.
03:19Stop this rot or corruption
03:21of people taking advantage through their political office.
03:26One party can get 200, 300 million direct cash into the party.
03:30Individuals can buy properties in London,
03:33in New York, in Australia.
03:36I mean, you are businessmen.
03:37Do whatever you like with your money.
03:39But if I'm a politician, I want to become prime minister.
03:42What? To serve the people.
03:44And suddenly I start stealing billions.
03:46I can't do that.
03:48But that's precisely the point.
03:49And therefore we have to make sure we act and stop this rot.
03:53I don't need to ask you.
03:55You all know the system.
03:58Yeah, yeah, yeah.
03:59You are part of it.
04:00I mean the sense that you have to survive.
04:06But I'm appealing to you.
04:09I want to stop this.
04:11I want to stop this.
04:14Now, if you can stop this,
04:16we can get back billions of ringgit of revenue.
04:19That's why I've said this publicly
04:22to the so-called Malay leaders.
04:25We have to take care of the Malays.
04:27We have to fight for the Malays.
04:29We are the Malay leaders who want to save the Malays.
04:32Oh, good.
04:33So I said,
04:34that's right, good, good.
04:35The Malay leaders have to help the Malays.
04:38But how rich are you?
04:402 billion.
04:41There's 5 billion.
04:42There's 8 billion.
04:44Are you really a Malay leader?
04:46Yeah.
04:47Okay.
04:48Give back half to the Malays.
04:51You have 8 billion.
04:52Give back 4 billion right away.
04:54Because you took the wrong tariff.
04:59That's why I,
05:01as you know,
05:03I don't see this as a racial issue.
05:07I see this as
05:09a common endeavor
05:11to help improve
05:14the governance in this country
05:17and save the people.
05:19If they're poor, they're poor.
05:21Malays, majority,
05:23Indians, Chinese,
05:25Sabahan Sarawakians.