Prime Minister Najib Abdul Razak today mocked the opposition's plan to zero-rate or abolish the goods and services tax (GST) which presently stands at six percent, describing it as cheap talk.

A glaring issue, Najib pointed out, was the opposition's inability to account where it will derive income from once the GST is zero-rated, which will cause a shortfall of RM42 billion a year in revenue.

"How can some quarters out there talk nonsense and lie to the people that if they become the government, they will zero-rate the GST or abolish it.

"I want to ask, if that is how the opposition counts, where will they get the RM42 billion?

"People say talk is cheap. Anyone can say anything, promise this and that," he said when presenting his annual report card on the state of the economy in Shah Alam tonight.

Najib said GST was essential in making up the shortfall due to the fall in oil prices.

He pointed out that prior to 2015, oil comprise 41 percent of the country's revenue.

"With strong and unwavering political will, in the interest of economic stability and the prosperity of the nation and people, the government was firm in the implementation of GST.

"That was why the government was able to cope with the reduction in oil revenue through the collection of RM42 billion in GST in 2016," he said.

Najib added that the seven million Malaysians would also not be able to enjoy the BR1M cash aid and other welfare benefits if it was not for the government's determination to ensure the country's revenue stream.

"Therefore, it is clear that the opposition's plan is unrealistic, ungrounded and misleading the people," he said.

Najib said that even India, a major global economy, decided to implement GST in stages, with the highest rate at 28 percent.

He added that the gulf states in the Middle East too were moving in that direction.

"In conclusion, BN's pragmatic move to implement GST was timely, appropriate and the evidence of that can now be seen," he said.

Najib said his government is determined in growing the country's economy and becoming the top 20 advanced nations by 2050, under Transformasi Nasional 2050 (TN50).

"As the saying goes, Rome was not built in a day.

"Also to us, the BN government, failure is not an option," he said, stressing that there will be "no retreat and no surrender".