Umno veteran Tengku Razaleigh Hamzah today said it is wrong for the government to implement the Goods and Services Tax (GST) just to pay off the government's debts.

“The problem with taxes is that we cannot make a decision easily as it involves everyone’s affordability.

“So if we want to introduce the GST to collect money to lessen the government’s debt, then that is wrong,” he said.

The Gua Musang MP, popularly known as Ku Li, said the time was not right to implement the tax, and expressed concern should the 6 percent be increased in the future.

“The question is, should we implement the GST with the (current) rising cost of living? In April, it will be 6 percent, but we do not know how much it will be increased later.

“It will increase, that’s why people are worried,” he told reporters after giving his speech at a forum in Kuala Lumpur today.

However, the former finance minister said it would be a good thing if the GST could be implemented for those who can afford to contribute to the country’s development, as “not all Malaysians contribute”.

Meanwhile, commenting on Pakatan Rakyat’s alternative budget, the Gua Musang MP said that the capital gains tax (CGT) was not a good taxation system to replace the GST.
 
He pointed out that it is merely another form of taxation which will only be imposed on those in business.
 
“It’s not a good replacement tax system. We have used it before but we (then) continued using it after the recession.
 
“How do we pay tax on profit if there’s no profit at all? As such, it is unreasonable,” he said.
 
When asked further on whether now is the right time to implement GST, he said that the current situation does not allow it.
 
“I do not think that the situation today allows for it to be implemented as we are not as developed to invest. The stock market nowadays is not so good,” he said.
 
Last Monday, Pandan MP Rafizi Ramli said about 10% of the country’s wealthiest controls more than 77% of the country’s financial assets.
 
He also said that the proposed CGT was more relevant and will not burden the country’s poor who will be affected by the GST.

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