GST balloons to 28 per cent at end consumers

PAS Youth chief and Temerloh member of parliament Nasrudin Hassan has urged the government to come clean on the controversial Goods and Services Tax (GST), said to be ready for implementation following Barisan Nasional's narrow victory in the polls.

Nasrudin responded to the claim made by minister in the Prime Minister’s Department Idris Jala who gave his calculation of new income for the government through GST.

Idris recently told a forum that at 7 per cent GST, the government could earn some RM27 billion.

“In 2011, this BN senator said GST would be at four per cent. Now it is almost double. In fact, this is higher than the existing government service tax at six per cent,” said Nasrudin, who also heads PAS Youth's Movement to Save the Economy (GESA).

Nasrudin said at the new rate, end consumers would be paying 28 per cent in GST.

“The end consumers would pay GST at 28 per cent rate to cover the cost by manufacturers at seven per cent, wholesalers at seven per cent, retailers at seven per cent and lastly another seven per cent for them. Consumers will not realise this because the 21 per cent of GST had been imposed on manufacturers, wholesalers will be included as the product price,” he explained.

Nasrudin (right) also rubbished the view that GST implementation could be balanced with reduction in income tax.

“It’s not relevant because only 10 per cent of the population pay taxes,” he added.

He said PAS Youth would oppose any plan to introduce GST.

Nasrudin said the government should instead focus on increasing national revenue through prudent spending and recovery of debts from politically-tied businessmen friends.

“It is regretful that even with a mandate of 47 per cent popular votes, BN is big-headed in punishing majority of the people who did not vote for them,” chided Nasrudin. -HD