Malaysians already griping about the 6% Goods and Services Tax (GST) can let out a sigh of relief, as Prime Minister Najib Razak announced today that Putrajaya has no plans to increase the rate for the country’s most talked-about tax.
Najib told a press conference in Putrajaya today that the Federal Government does not feel the rakyat would be able to absorb more than the 6% imposed on a wide range of products and services, and did not want to burden the Malaysian people any further.
“We are not envisaging an increase in GST. I don’t think the people have the capacity to absorb any increase in GST,” the PM said, as quoted by The Star Online‘s Mazwin Nik Anis.
“It is not on the table.”
Najib, who also serves as Finance Minister, was asked at the press conference if the Federal Government would consider hiking up the GST’s taxation rate to shore up federal revenue in the event that global oil prices continue to plummet.
As it stands, Najib will announce revisions to Budget 2016 allocations and expenditures on January 28, in light of the weakening Ringgit and falling global oil prices.
When it was presented last October, Budget 2016 was predicated on oil trading at USD55 per barrel, despite it being priced at USD48 at the time. Currently, crude oil is trading at around USD34 per barrel.
