Lau speaks in the Dewan Negara. — Screen grab from Facebook/Robert Lau Hui Yew
SIBU (April 4): Senator Robert Lau Hui Yew has suggested the government reintroduce the Goods and Services Tax (GST) to help solve the country’s budget deficit.
According to him, GST is still the most efficient form of taxation compared to the current Sales Tax.
“Personally, I feel that any plan to reintroduce GST should begin as soon as possible,” he said when debating the Additional Supplementary Bill (2022) 2023 in the Dewan Negara.
Lau said he concurred with Senator Ahmad Ibrahim that taxes should start at a low rate of 3 per cent.
“I suggest it to be followed by an annual increase of 1 per cent each year up to 6 per cent before annual additions are to be reviewed,” he said.
Lau said the country’s economy must improve if the government wants tax revenue to increase and, hence, the government must make every effort to strengthen the economy.
Additionally, he said the government must be prudent in spending and channelling limited funds to the right sectors.
According to him, too much of the country’s revenue has been used to pay the government’s debt and commitments.
He called on Prime Minister Datuk Seri Anwar Ibrahim’s government to urgently address the issue of high national debt.
He pointed out the Budget 2023 presented by Anwar had a deficit of RM99 billion, equivalent to 5 per cent of gross domestic product (GDP) and the development allocation for the year.
“If we take into account the liabilities, it is RM1.5 trillion (81 per cent of GDP). Interest alone amounts to RM46 billion, equivalent to 16 per cent of total income (RM291.5 billion) and this does not take into account the total payment,” he said.
He called on the Ministry of Finance to state the estimated timeframe for the country to reach a balanced budget and the steps to achieving this.
“The answer is easy but the implementation challenging. We must add revenue, reduce expenses, or both. However, the task is very difficult to achieve,” he said.
Lau said what complicated the situation was over 22 per cent of the country’s revenue comes from non-renewable resources, namely oil and gas.
Last year, he said Petronas contributed RM55 billion to the government.
“The majority of this wealth came from Sarawak and Sabah and most of this wealth has been wasted, including on mega projects and bailouts,” he added.