KUALA LUMPUR, Oct 23 – Government revenue would have been lower by RM21 billion in 2016 if not for the Goods and Services Tax (GST). Prime Minister Datuk Seri Najib Tun Razak said if the Sales and Services Tax (SST) has been retained, the collection for the year is estimated at RM18 billion compared with GST revenue of RM39 billion.
Prime Minister Datuk Seri Najib Tun Razak who also the Finance Minister said this when tabling the Budget 2016 in the Dewan Rakyat here today. He said if this was the case, the fiscal deficit would have increased to 4.8 per cent and not the 3.1 per cent targeted for 2016.
He added that the government would have then been forced to borrow, including to pay civil servants salaries, the nations credit rating would be downgraded and all borrowings costs, including personal, business and housing loans would definitely be higher. The GST was implemented on April 1 this year at the rate of six per cent to replace the SST of 10 per cent. The tax regime has to date been implemented in more than 160 countries.
