Najib addresses the press conference at Wisma Bapa Malaysia.
KUCHING: Putrajaya has no intention of raising the Goods and Services (GST) tax, which currently stands at six per cent.
Prime Minister Datuk Seri Najib Tun Razak said there has never been any discussion at the federal Cabinet level or with the Finance Ministry to raise the GST rate, regardless of any (economic) situation.
Najib, who is also the Finance Minister, explained that talks of the government increasing the rate were mere rumours created by the opposition to instigate the people.
“The Federal cabinet has resolved to fully reject all claims by the opposition alleging that the GST rate will be raised if Barisan Nasional (BN) wins the state election.
“These (allegations by the opposition) are all lies and baseless,” he told a press conference at Wisma Bapa Malaysia after chairing the federal Cabinet meeting here today (May 4).
As for progress in the negotiations on the devolution of power for greater autonomy to the government of Sarawak, he pointed out that negotiations will move to iron out and review legal matters soon.
“The empowerment will be done in stages, of which 13 administrative matters have been done,” he said.
The next phase of negotiations will also involve analysing and reviewing if the federal government has taken more power than it should from Sarawak and its people, he added.
Meanwhile, the prime minister also said that now was not the right time for talks on increasing the oil royalty for Sarawak, saying that they were currently on hold.
“The country’s revenue is critical at the moment, after having lost RM40 billion due to the drop in oil prices,” he told a press conference at Wisma Bapa Malaysia after chairing the Federal Cabinet Meeting here today (May 4).
Najib assured that more allocations for development will be given instead, such as the government’s continued commitment to completing the Pan Borneo Highway.