Pakatan Harapan to restore sales tax if it wins GE14

(The Star) – Pakatan Harapan will reinstate the 16% Sales and Services Tax (SST) to replace the 6% Goods and Services Tax (GST) if it forms the government in the next general election, said its chairman Tun Dr Mahathir Mohamad (pic).

The former prime minister admitted that removing the GST without an alternative source of revenue would be “very bad” for a Pakatan Harapan government.

“The GST replaces the sales tax, so if we abolish the GST we must restore the sales tax, but all the processes should be done stage by stage.

“If you suddenly abolish and you have no source of income that will be very bad for the government,” Dr Mahathir said during a panel discussion with DAP adviser Lim Kit Siang on Wednesday.

Dr Mahathir said that in the past, price hikes such as for fuel, were done in stages to minimise the impact on the people.

“And this (GST removal) can be reversed in a way that will not hurt the people and government finances,” he said.

He was, however, coy when asked what policies a Pakatan Harapan government would put in place after GE14.

He said the coalition has answers to many of the problems facing the country and the strategies can only be implemented if it forms the next government.