The government has given an assurance that the country’s goods and services tax (GST) of six percent will not be raised, even after the 14th general election.
Deputy Prime Minister Ahmad Zahid Hamidi said this decision was due to the fact that the government had made a calculation and found that the existing rate was sufficient and could contribute to the country's revenue by more than RM40 billion.
He said in the 2018 Budget, the government also projected an increase in revenue from oil and gas to about US$70 per barrel from US$52 per barrel previously.
“Revenue from oil, derived from the Petronas’ dividend is able to help the government to implement projects listed in the BN manifesto, apart from enabling the government to accommodate an annual salary increase of the public servants announced recently,” he said.
He said this at a media conference after attending a lunch at the Basha Restaurant in Bagan Datuk today.
Zahid also said that the allegation on the increase in GST rate has been deliberately spread by certain parties who wanted to undermine the people’s trust in BN.
He said the allegation was unfounded because the Finance Ministry and the Bank Negara did not see any need to raise the existing rate.
“Our revenue is not only sufficient, but could also accommodate the budget that has been announced. It is also more than adequate to see us through for the next five years,” he said.