“Bringing back GST: That would be highly irresponsible!”

[superadmin]

RECENTLY, a spate of announcements and opinion pieces have surfaced in the mainstream media supporting the reintroduction of the goods and services tax (GST).

The GST was repealed in June 2018.

But once again, this option is being touted as the most sensible and responsible thing to do given the dire circumstances. The Federal government’s deficit has ballooned to about RM100 bil per year. And total federal debt (excluding contingent liabilities) has soared to RM1.2 tril.

Proponents of the GST argue this consumption tax will cut the government’s deficit. They also believe this tax will convince investors that the government is being fiscally prudent and so result in more investments flowing into the country.

But Parti Sosialis Malaysia (PSM) disagrees. We campaigned strongly against the GST in 2011-2013 because it is a regressive tax. Nothing that has happened over the past 10 years alters this fact.

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