KUALA LUMPUR, 31 Oct: Opposition Leader, Datuk Seri Anwar Ibrahim, insisted that all forms of leakages, corruption and monopoly, which rampant in the country, must be stopped before thinking about implementing the goods and services tax (GST).
He said, if Pakatan Rakyat (PR) was ruling, the GST would be implemented with conditions. However, it will not be a priority that has to be implemented urgently because it requires special consideration in advance.
He said, the people’s income should be given attention and increased before the implementation of the GST, which is seen as to be burdensome to the people, especially low and middle-income earners.
“I am not saying that I object the GST principle in my budget speech. I am stressing from the point that the implementation of the GST system should be done transparently and efficiently.
“The two conditions we are emphasising on is to firstly remove leakages by saving the money to spend,” he said in a press conference at the Parliament lobby today.
Anwar said that the second condition is that the income levels of the people should be improved and he acknowledged that the GST system would be efficient, with the country recording a surplus, when he was the Finance Minister.
“But now, the deficit is serious, and I would not have implemented it that time, despite studies on the system was fine, but the implementation is not appropriate,” he said.
Regarding his argument by making Singapore an example in the implementation of the GST, Anwar answered that the country implemented the GST with a time line, in addition to ensuring an increase in the people’s income.
“It is not that I do not support the basic principle, but Singapore implemented it a three percent, guaranteeing that it will not rise in seven to nine years,” he said.
“All PR component parties will pursue information sessions for the people on the GST so that they understand why this cannot be implemented now,” he said.
Previously, various quarters disputed Anwar’s statement and claimed that PR supports the implementation of the GST as a whole. However, this matter was denied.