LIAWAN: Parti Bersatu Sabah (PBS) will take a neutral stand on the Federal Government’s decision to reinstate the Sales and Service Tax (SST) regimen and do away with the Goods and Services Tax (GST) that was introduced in 2015 and blamed for soaring consumer costs.
The current sitting of Parliament will approve the reversion to the SST regimen next week to be effective on September 1, this year.
“PBS will wait and see if prices drop as promised by the Federal Government. That was a pledge made by the PH government when seeking the people’s mandate in GE 14. The onus is now on the PH government to make good on its promise,” Mositun said here after addressing party leaders and members of the Liawan Division.
Mositun said the previous government had opted for GST because it was a more efficient system and provided a wider tax base, resulting in more revenue for the government.
“Even Mr Lim Guan Eng, the new Minister of Finance concedes that now, but because PH had successfully used the abolition of GST as an election promise the government is going ahead with it. I believe it will slow down economic growth,” he said.
Mositun said the next few months would show if SST would actually see a general lowering of prices for consumer goods, but he believed that in general he was still doubtful if it would make any significant contribution towards lowering the overall cost of living for the man on the street.
“And it must be noted that tax revenue will fall by RM21 billion. Some of it can be compensated by better earnings from exports of commodities like oil for which prices are rising, but what if things suddenly change? What can we fall back on?” he asked.
Mositun said the year ahead was full of uncertainties and the people should prepare themselves for any eventualities.
He said the political situation in Sabah had not quite settled down and PBS was very concerned about political and economic stability.
“Without prejudice, the state’s administration, its economy and the pace of development had been very good up till GE14. Can this new administration under the Parti Warisan Sabah leadership sustain that? That’s what PBS is most concerned about. Whichever party is in charge, PBS wants to see Sabah prosper and develop. That is our concern, and we will continue to play our role in safeguarding the rights and welfare of our people,” Mositun said.