Opposition critical of impending GST

Published: Friday October 25, 2013 MYT 8:05:00 PM
Updated: Friday October 25, 2013 MYT 9:25:19 PM
BY TASHNY SUKUMARAN AND RAHMAH GHAZALI

KUALA LUMPUR: The Opposition has continued its objection against the goods and services tax (GST) that will be implemented in April 1, 2015 as announced by Prime Minister Datuk Seri Najib Tun Razak in his Budget 2014 speech.

Khalid Samad (PAS-Shah Alam) said while the Budget was disappointing, the implementation of the consumption tax was "expected".

"We are looking at another five years of deficit. The GST will just burden lower-income groups. I do not see a serious intent from the Government to solve the problem," he said.

Meanwhile, R.Sivarasa (PKR-Subang) said the implementation would widen the gap between the rich and poor, and increase prices of goods.

"We should control Government spending and use that money first to reduce the deficit," he said.

Liew Chin Tong (DAP-Kluang) said GST, by nature, is designed to tax those who could not afford to be taxed in the first place."The 60% of citizens who are eligible for Bantuan Rakyat 1Malaysia (BR1M) will now be taxed by GST, shrinking the domestic consumer market. The disposable income that could have been spent buying goods is now taken away by tax," he said in a statement.