GST: DPM’s ‘tax evader’ label unfair, says Guan Eng

GST: DPM’s ‘tax evader’ label unfair, says Guan Eng

The Penang chief minister says even Mydin's boss has said prices of goods have gone up due to the GST.

Free Malaysia Today
Penang Chief Minister Lim Guan Eng says protest against the GST is coming from the low-income group.
GEORGE TOWN:
It is unfair for Deputy Prime Minister Ahmad Zahid Hamidi to label those against the goods and services tax (GST) as “tax evaders”, says Penang Chief Minister Lim Guan Eng.

Lim said those who were against the GST were those who were “suffering” from the increased prices of goods.

He said Zahid should take note of the statement by hypermarket chain Mydin’s managing director Ameer Ali Mydin who said that people’s buying power had reduced significantly.

“I do not agree with Zahid’s suggestion that those against GST are those who want to run away from taxes. It is unfair as this protest against the GST is coming from the low-income group.

“Even Mydin’s boss, who is not a Pakatan man, said one of the factors in the increase of prices of goods is the GST, with sales dropping in his hypermarket.

“We can only hope that today is the final anniversary of the GST. We hope we can say ‘selamat akhir riwayat’ (the end of) the GST,” Lim said at a press conference here today.

The 6% GST was implemented on April 1, 2015. It replaced the 10% sales tax and 6% service tax.

Ameer, in an interview with a radio station, had said hypermarkets and supermarkets had been seeing negative growth.

He said despite the economy doing well, consumer spending appears to be weak.

Ameer said based on Mydin’s internal figures, prices of goods have risen by 14% to 15%.

BN strategic communications unit deputy director Eric See-To said Ameer’s comments were exaggerated, as it was only hypermarkets which were losing business.

He said smaller grocery stores are the trend now, with many chain grocers like 99Speedmart and Jaya Grocer growing rapidly.

He said it was unfair to draw conclusions on the overall health of Malaysia’s economy based on the performance of just one side of the retail industry.

Yesterday, Zahid had commended the Customs Department for the “rigorous” implementation of the GST, as it had strengthened the country’s economy.

He said the rise in the prices of goods was common in most countries with GST.

Zahid also said the GST was a better taxation system compared to the sales and services tax that it replaced.

“Those who are angry at GST are those who want to run away from taxes,” he said at an event in Bagan Datuk.

A finance ministry report last October reported that GST collection this year was expected to reach RM43.8 billion, which is projected to account for 18.3% of its entire estimated revenue of RM239.9 billion.

The GST has been hailed repeatedly by the prime minister as the “saviour” of Malaysia’s economy after lower revenue due to a decline in oil prices but the Pakatan Harapan proposes to abolish it if it comes to power.

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