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The goods and services tax (GST) saved the prime minister but not Malaysians, says DAP's Lim Guan Eng in response to Datuk Seri Najib Razak's claim today that the consumption tax was Malaysia's saviour.
The DAP secretary-general said while GST saved Malaysia in the face of a very challenging economic environment, "everyone else collapsed", as Najib claimed.
"Everybody collapsed. Just because one person didn't collapse, everybody collapsed," said the Penang chief minister.
He said Malaysians still have to deal with a slow economy, the depreciating ringgit and rising cost of living which many blamed on the GST.
"The ringgit is down to 4.43 against the US dollar. Is it worth the price?" he said after opening the Penang International Property Summit 2016 today.
Najib today said GST contributed to the country's revenue, and described it as the saviour of the government's finances and the economy.
As of last month, the projected nett collection of GST amounted to RM27.126 billion, out of the gross proceeds of RM37.67 billion.
It is estimated that nett proceeds of GST will increase to RM39 billion this year.
Najib said the tax benefitted the nation and helped sustain the country's revenue that had declined following the global drop in oil prices.
To accommodate the lower revenue, Najib today said he would announce a revised Budget 2016 to make the national budget in line with current economic realities.
"What is the use of a revision budget if there is no clean administration?" asked Lim, adding that the Penang government had no GST but had managed to record annual surpluses since 2008.
"But even with GST, the country still records deficits. Where is the logic? Are you running a clean government?
"In Penang we don't need the GST but we still have surpluses and can afford to give out BR1M-like aid," he said, referring to the state's annual welfare aid for newborn, senior citizens, single mothers, taxi drivers, fishermen and students.
Lim also raised the discrepancy in the sale price of debt-ridden state investment firm 1Malaysia Development Berhad's Bandar Malaysia property to a Chinese consortium.
It was reported that 1MDB had announced the sale of 60% of the land parcels to China Railways Engineering Corporation was at RM7.41 billion, but the Chinese firm later said it was RM5.28 billion.
"The failure of 1MDB, and the discrepancy of RM2.13 billion for the sale of its Bandar Malaysia property have not been explained up until now.
"Why is there a difference in the sales price announced? There is no full explanation. They must come clean," he said.
Lim reminded Putrajaya that investors also look into fundamental factors if it wanted to revive confidence.
"Spend money on education, infrastructure, public transport and innovation, and on creating high income for Malaysians, not on building underground cities."
Lim was recently criticised by pro-Umno bloggers for selling land to investors, but countered by saying the land sale was to bring in foreign investments that would create jobs for Malaysians. (link to http://www.themalaysianinsider.com/...eates-jobs-says-guan-eng#sthash.NU6KBF7T.dpuf )
He said the economy would be tough on Malaysia, especially with its high debt and deficit, as well as depreciation of the currency, but expressed confidence Penang would ride out the gloom.
https://sg.news.yahoo.com/gst-only-saved-guan-eng-065013229.html?linkId=20190738
He said the manufacturing and tourism sectors were still doing well, adding that tourism saw a double digit growth last year. – January 8, 2016.
The DAP secretary-general said while GST saved Malaysia in the face of a very challenging economic environment, "everyone else collapsed", as Najib claimed.
"Everybody collapsed. Just because one person didn't collapse, everybody collapsed," said the Penang chief minister.
He said Malaysians still have to deal with a slow economy, the depreciating ringgit and rising cost of living which many blamed on the GST.
"The ringgit is down to 4.43 against the US dollar. Is it worth the price?" he said after opening the Penang International Property Summit 2016 today.
Najib today said GST contributed to the country's revenue, and described it as the saviour of the government's finances and the economy.
As of last month, the projected nett collection of GST amounted to RM27.126 billion, out of the gross proceeds of RM37.67 billion.
It is estimated that nett proceeds of GST will increase to RM39 billion this year.
Najib said the tax benefitted the nation and helped sustain the country's revenue that had declined following the global drop in oil prices.
To accommodate the lower revenue, Najib today said he would announce a revised Budget 2016 to make the national budget in line with current economic realities.
"What is the use of a revision budget if there is no clean administration?" asked Lim, adding that the Penang government had no GST but had managed to record annual surpluses since 2008.
"But even with GST, the country still records deficits. Where is the logic? Are you running a clean government?
"In Penang we don't need the GST but we still have surpluses and can afford to give out BR1M-like aid," he said, referring to the state's annual welfare aid for newborn, senior citizens, single mothers, taxi drivers, fishermen and students.
Lim also raised the discrepancy in the sale price of debt-ridden state investment firm 1Malaysia Development Berhad's Bandar Malaysia property to a Chinese consortium.
It was reported that 1MDB had announced the sale of 60% of the land parcels to China Railways Engineering Corporation was at RM7.41 billion, but the Chinese firm later said it was RM5.28 billion.
"The failure of 1MDB, and the discrepancy of RM2.13 billion for the sale of its Bandar Malaysia property have not been explained up until now.
"Why is there a difference in the sales price announced? There is no full explanation. They must come clean," he said.
Lim reminded Putrajaya that investors also look into fundamental factors if it wanted to revive confidence.
"Spend money on education, infrastructure, public transport and innovation, and on creating high income for Malaysians, not on building underground cities."
Lim was recently criticised by pro-Umno bloggers for selling land to investors, but countered by saying the land sale was to bring in foreign investments that would create jobs for Malaysians. (link to http://www.themalaysianinsider.com/...eates-jobs-says-guan-eng#sthash.NU6KBF7T.dpuf )
He said the economy would be tough on Malaysia, especially with its high debt and deficit, as well as depreciation of the currency, but expressed confidence Penang would ride out the gloom.
https://sg.news.yahoo.com/gst-only-saved-guan-eng-065013229.html?linkId=20190738
He said the manufacturing and tourism sectors were still doing well, adding that tourism saw a double digit growth last year. – January 8, 2016.
