Najib: Scrapping GST, implementing SST a ‘double whammy’


The former prime minister says zero-rating the GST did not result in a drop in prices for a majority of items while the SST will only inflate prices further.

(FMT) – Former prime minister Najib Razak today voiced concern that the proposed sales and services tax (SST) will push up the cost of living, contrary to the government’s promise to reduce the people’s financial burden.

Najib, who introduced the 6% goods and services tax (GST) in 2015 when he was the prime minister, said the people were disappointed that the new government’s decision to zero-rate the GST had not led to a drop in prices for a majority of items.

“The abolishment of the GST saw no impact while the re-introduction of the SST will see prices increase,” he told reporters outside the Dewan Rakyat.

“This is what we call a double whammy.”

Najib was asked to comment on the Agong’s support for the scrapping of the consumption tax in his royal address when opening the new parliamentary session today.

The government had announced that the SST, scheduled to take effect in September, would carry a levy of 10% for sales and 6% for services.

Barisan Nasional’s Khairy Jamaluddin said he would table a motion in the Dewan Rakyat to retain the GST, arguing that it was more transparent and efficient than the SST.

Najib also said he would raise issues related to the SST in the Dewan Rakyat.



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