Let’s be honest now, almost everyone has been feeling the pinch from the implementation of the Goods and Services Tax (GST). It’s a struggle that we’ve been dealing with since April 2015 as it affected other daily expenditures for Malaysians from all walks of life including basic transportation fares and other logistical costs.
Which in turn set off a domino effect, affecting the F&B and professional services industry as well.
We can’t blame Malaysians for being on their toes about their livelihood and welfare, and super paranoid about an “impending hike” in the GST rate, currently set at 6%. In fact, there has been rumours that the Malaysian government are looking to increase the GST rate during these trying economic times.
However, according to a The Star Online report, quoting Prime Minister Datuk Seri Najib Tun Razak, an increase in GST was not “on board” for now.
Najib, who also holds the Finance Minister post, said that the people’s welfare and their ability to absorb any more increases must be taken into account when deciding on the need for a hike in GST rate, adding that the people would not be able to absorb any increase in GST.
Last week, he had explained that with the money collected from GST, people could continue to enjoy financial aid, indirect or hidden subsidies such as low fees for medical services at government hospitals, and free basic education for children.
Earlier, Najib chaired 3 meetings with analysts, economists, captains of industry and Special Economic Committee to seek their views on the proposed recalibration of Budget 2016.