KUALA LUMPUR – Oct, 19, 2016: Second Finance Minister Datuk Johari Abdul Ghani has criticised as unrealistic Pakatan Harapan’s plan to introduce zero-rated good and services tax (GST) in its own budget proposals for next year.
This is because the opposition coalition cannot make the proposal a reality because it fails to clarify how the revenue otherwise raised by the GST can be substituted.
“If they reduce it to zero, the country will lose around RM35 to RM38 billion in revenue.
“So can they tell me how are they going to recoup that amount without GST?” asked Johari, an accountant by training.
“Do not play politics. The government has 1.6 million staff so with RM38 billion gone, how are you going to pay their salaries, bonuses and emoluments?”
Pakatan Harapan’s shadow budget was unveiled in parliament by opposition leaders today and aside from aiming to reduce reliance on the GST, it highlights other measures such as reducing allocations for the Prime Minister’s Department and tackling corruption.
Prime Minister Datuk Seri Najib Razak will table Budget 2017 on Friday.