Saifuddin to Najib: We’ll do fine without GST

(The Star) – Datuk Saifuddin Nasution Ismail has refuted claims by the former prime minister that the country will lose its economic advantage following the abolition of the Goods and Services Tax (GST).

The Domestic Trade and Consumer Affairs Minister said that the country had used the Sales and Service Tax prior to 2015, but still managed national development and economic growth.

“So what was the economic problem that we faced at that time?” he told reporters at the Parliament lobby on Wednesday.

He was responding to the remarks by Datuk Seri Najib Tun Razak that the country would lose the economic advantage, catalyst for growth, and competitiveness made possible by the GST.

“The problems and weaknesses of the old economic structure, such as high corporate taxes, tax evasion and outflow of illicit funds, will return,” said the former finance minister in a Facebook post.

Saifuddin said that infrastructure, development, distribution of assistance to the rakyat could still be implemented thanks to “good financial discipline”.

“Our financial management was good and our debt did not balloon out of proportion.

“Although we do not collect as much revenue under the GST, we believe we still can drive the economy, protect the welfare of the rakyat, pay salaries, and implement projects,” he said.

Asked what actions would be taken if the bills related to SST did not go through the Senate, Saifuddin said the Finance Ministry was looking at several legal options as part of an “exit plan” to settle the issue.

“A bill that is categorised as a money bill, there are ways for us to bring it forward and the Finance Minister is looking at it,” he said.