BY: NAZLI IBRAHIM
SHAH ALAM, SEP 18: The Federal Government is urged to reduce the rate of Goods and Services Tax (GST) from 6% to 2% in 2017 to enable the country’s economy to withstand uncertain conditions in 2017.
Former Bank Negara Malaysia (BNM) Deputy Director Dr Rosli Yaakob said that besides cutting the GST rate, the government should stop mega projects that with high costs.
“Economic growth is slowing down. The government must take steps to implement policies that can overcome the slowing growth rate such as reducing GST and other taxes like corporate taxes and income taxes. We should ensure money remains with the rakyat so that they can continue to spend.
“We have to re-evaluate the GST rate, which is at 6%, to be reduced to at the most 2% to 3% so that the rakyat’s burden can be reduced and so that they can have enough money to spend. This will give a boost to the economy.
“Projects that don’t contribute to productivity, like Taman Tugu, have to stop. This project has to stop until our economy really recovers because this project does not add to economic growth,” he said when contacted by SelangorKini.
He said that the government should review the conditions for housing loans including the possibility of reducing the 10% down payment to buy a home and the interest rate charged.
The tight loan conditions have caused many prospective home buyers to be unable to prepare the 10% down payment which then causes more unsold housing units.
“The next step is to cut Cabinet Ministers’ and Members of Parliament’s salaries. This will show their responsibility in helping the national economy to recover by taking a pay cut.
“Increase promotion to market local products overseas including tourism products. We need to encourage increasing our exports and tourism,” he added.
Dr Rosli also said that the BR1M programme has to be re-examined to focus on those who really need it.
Budget 2017: Government urged to cut GST, ministers’ pay, stop mega projects
