The government's latest postponement of the goods and services tax (GST) is a ‘major’ indicator that snap polls are around the corner, said PKR de facto chief Anwar Ibrahim.

NONE "There is a major possibility of snap general elections and I anticipate that tomorrow's budget is going to be an election budget," he told a press conference at the Parliament House lobby today.

Anwar, a former deputy premier and finance minister, pointed out that the GST was a poorly-constructed bill that would only burden Malaysians while contributing little towards generating economic activity.

 He said it's clear that the BN government did not think through the bill before tabling it last year, as evident from their constant flip-flopping over its proposed implementation.

Anwar, who is also Permatang Pauh MP and opposition leader, said the government is "afraid" as it is unable to respond to the many assertions by the Pakatan that the GST will only end up burdening the rakyat, particularly the lower income group.

"This is the desperation of the BN, in light of the by-elections in Galas and Batu Sapi. This is not a well-crafted piece of legislation and this postponement is because of the by-elections and possibly snap elections," he added.

DAP's Klang MP Charles Santiago concurred that the postponement is an indication of possible snap elections, but remained sceptical about the effectiveness of the move in swinging voters' sentiments in favour of the BN.

 “The perception is that the government wants to take it slow, and only implement the GST after the general election. It is also a way to avoid turning it into an election issue, but after all is said and done it will still be an election issue... the government is just buying time.”

mtuc cawp water tariff pc 171006 charles santiago Charles ( right ) acknowledged that politically, the decision may bring some benefit to the ruling coalition but stressed that it will have an overall negative effect on the country.

“When you look at investors’ reviews (of the postponement), they are getting angry. They will be thinking that the government is indecisive,” he said.

He added that small and medium enterprises (SME) are ill-prepared for the GST, one of the sectors on which the new tax format is expected to have an heavy impact.

Domestic Trade and Consumer Affairs Minister Ismail Sabri Yaacob acknowledged that SMEs are probably not ready to face the impact the GST would have on local consumption, but stressed that there are sufficient laws in place to manage any price hike.

“... with the price control and anti-profiteering act, we can control (the situation) so that people don’t use GST as an excuse to raise prices,” he said.

Ismail, however, brushed aside accusations of a government flip-flop, saying the opposition is simply looking for excuses to kick up a ruckus.

 “If we go ahead they are the ones to make noise. If we don’t go ahead, they say we lack political will... they will just accuse us of burdening the rakyat if we push through the bill,” he said.

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