PETALING JAYA: Prime Minister Datuk Seri Najib Razak said the introduction of the Goods and Services Tax (GST) in 2015 was among the reasons for the government’s ability to halve the nation’s fiscal deficit from 6.7 per cent in 2009 to 3.1 per cent in 2016.
He said, prior to 2015, 41 per cent of the national income came from oil-based revenue.
Najib said, due to the global economic downturn and decline in crude oil prices, the government saw its revenue reduced.
“But as a result of strong and unwavering political will, and for the sake of economic stability and prosperity, the government persisted with its stand on implementing GST," he said in his speech at the presentation of the 2016 National Transformation Programme report tonight.
Najib said the implementation of the GST enabled the government to cushion the revenue shortage from petroleum.
He added that in 2016, the government collected GST totaling RM42 billion.
Najib also took the opposition to task for fooling the people, by claiming that if they formed the government, GST would be zero-rated or abolished.
"Then let me ask, if the opposition seeks to implement zero-rated (GST), where are they going to source the RM42 billion?
"(If GST was not implemented) how would the seven million Bantuan Rakyat 1Malaysia recepients get their assistance? We would also have to cancel the 1Malaysia Student Discount Card programme, while budget allocation for 35 UiTM campuses would have to be cut.
"The government might have to retract the medical assistance for the rakyat, and many people would also lose their jobs," Najib said.
This was when the hall was filled with thunderous applause and cheers from the audience.
“They say talk is cheap. Everyone can say anything, promising this and that. If the government was not courageous and resolute, how could we have we met our operating and development expenditures,” he said.