Abolishing GST won’t bankrupt Malaysia, says Pua

DAP’s Damansara candidate Tony Pua says even if a PH government abolishes GST, there will be sufficient revenue from other taxes.

AYER KEROH: DAP’s Tony Pua has dismissed claims that Pakatan Harapan’s (PH) plan to abolish the goods and services tax (GST) if it wins Putrajaya will bankrupt the country.

Speaking at a ceramah in Melaka today, Pua, who is DAP’s Damansara candidate, compared these claims to the resistance against the opposition’s plans to give free water in Selangor prior to the 2008 general election.

He said opponents of the move had said Selangor would go bankrupt if the state government gave free water.

“But Selangor didn’t go bankrupt. The people of Selangor have enjoyed free water for 10 years, regardless of race, religion or political belief.”

Citing the example of Selangor, Pua said the country could do without GST if corruption was eliminated and there was sound economic management.

He said over the years, the Selangor government’s spending had increased from RM1.2 billion to RM2.8 billion but the state had not gone bankrupt.

“In fact, our reserves grew eight-fold from RM400 million in 2008 to RM3.2 billion presently.”

Pua said even if a PH government abolished GST, there was sufficient revenue from other taxes.

PH has pledged to abolish the 6% GST, implemented in 2015, within 100 days if it wins the May 9 polls.

Previously, Prime Minister Najib Razak said that axing the GST would send Malaysia down the path of Greece and bankruptcy.

Click here to get live updates throughout the GE14 season