PUTRAJAYA: The government will not increase the Goods and Services Tax (GST) rate although a revenue shortfall of RM30 billion is expected this year from the oil and gas industry, said Second Finance Minister Johari Abdul Ghani.
He said the government was committed to assist the lower and middle-income group and manage the fiscal deficit efficiently, which would than translate into steady economic growth.
“Although the government is facing a difficult time due to revenue loss from the oil and gas industry, the government will not increase the GST rate,” he told reporters after witnessing the signing of an agreement for the proposed issue of Sukuk Wakalah for the Setiawangsa-Pantai Expressway project here today.
The Sukuk Wakalah will be among the largest issuance for a new highway construction project.
Malaysia implemented a 6% GST on April 1, 2015.
“This time around is a difficult period for the government.
“Certainly, we need to manage our fiscal deficit because we do not want our deficit to become too huge as it will affect our ratings.
“Interest rates will go up and this will affect all sectors,” he added.