Najib: Dr M thinks he’s smarter than economists on GST

(Malay Mail Online) – Tun Dr Mahathir Mohamad’s opposition to the Goods and Services Tax (GST) runs counter to the opinion of credible economists, Prime Minister Datuk Seri Najib Razak said today.

Defending the consumption tax, Najib said it will help Malaysia to build a stronger, more sustainable and transparent economy.

“He is opposed to the implementation of GST, although all credible economists believe that broadening our tax base is the right thing to do,” Najib wrote on his blog today in the second part of his Frequently Asked Questions (FAQ) section, referring to former prime minister Dr Mahathir.

“The revenue will be used for the welfare of the rakyat. Indeed, the idea was first mooted during his administration,” he added.

Najib also stressed that as the prime minister, he has the responsibility to make the right but difficult decisions for all Malaysians, such as implementing GST.

“The introduction of the GST will help us build a stronger, more sustainable and transparent economy: it will help reduce our deficit, help us invest in our future, and help drive forward our national development,” he said.

“Unfortunately, rather than seeking to understand the economic rationale and the long-term benefit this will bring to the rakyat, some politicians have been attacking the introduction of GST, portraying this as an unusual and unnecessary measure for a country of Malaysia’s size,” Najib added.

Malaysia’s GST rate of 6 per cent, which was rolled out on April 1 this year, is the lowest in the region, whereas most countries implement a 10 per cent value added tax.