Defer GST in view of critical state of the economy: Ku Li

KUALA LUMPUR: Veteran Umno MP Tengku Razaleigh Hamzah (BN-Gua Musang) today urged the government to defer the implementation of the Goods and Services Tax (GST) in view of the "critical state" of the economy and public funds.
Stressing that the people are already bearing heavy household debts, Razaleigh said it must also be made clear whether the GST, which will be implemented on April 1, will benefit the country or is just to pay interests to creditors and bond holders.
"The reasons for GST implementation should not be kept a secret," Tengku Razaleigh told the Dewan Rakyat when debating on the royal address.
"The people must be told the actual reasons of the GST implementation as it would increase the people's financial burden," he said.
Raising his concerns on national debts, namely government debts, corporate debts and household debts, he said they have reached a level which can cause economic and political crises in the near future.
"We would certainly not be able to predict the consequences and effects of such crises, but what is certain is that it is dangerous to the constitutional democracy which shapes the statehood of Malaysia," he said.
Tengku Razaleigh said this puts the Dewan Rakyat to the test on whether it is able to fulfil its promise to the people, as it has the responsibility to know the total national debt and its burdens on the people later.
"Please note that we are considered to have failed in fulfilling the constitutional oath if we do not ask this question.
"The government has to be completely transparent and inform the Dewan Rakyat on the actual state and full information of the country's debts," he said.
Tengku Razaleigh said when national debts are burdening the people, the government should use national revenues for the welfare of the people to alleviate their burden, not to pay interests to creditors and bond holders.
"As elected representatives, we are also responsible for ensuring that all the guarantees of financial instrument and letters of comfort that are burdening the people with debts, are tabled in this Dewan so that we can evaluate responsibly whether or not the people will be burdened," he added.
He explained this was why he had, in an unprecedented move, written to each and every MP on Oct 30 last year, to call for the deferment of the GST implementation.
Tengku Razaleigh said, however, he had not received any response on the letter to date.
"I made this move because in a constitutional democracy, the Dewan Rakyat is the final institution that is responsible towards the situation of the country and the people.
"Besides that, as MPs we have sworn to serve the country and uphold the (Federal) Constitution for the sake of the people's interest and therefore be reminded that this pledge of allegiance is not to the party or its leaders," Tengku Razaleigh said.
Urging all MPs to act collectively and as a team, he called on them to uphold the sovereignty of the voters.
"We must make this decision based on our conscience. This means we must be brave to accept or reject any decision for the interest of the people we represent, even if it means going against the will of our party," he added.
He also called on all Cabinet members, MPs and those with decision-making powers in public and private sectors, past and present, to declare their assets and liabilities, and avoid conflict of interests.
"The declaration of assets should be done periodically and be kept by an independent body established under an Act of Parliament," he said.
Speaking to reporters at the parliament lobby in an immediate response to Tengku Razaleigh, Deputy Finance Minister Datuk Ahmad Maslan said the income generated from the GST is not to pay interests to creditors, but will be put in a consolidated fund and would be used for the benefits of the people.
Meanwhile, responding to Tengku Razaleigh's call for all ministers, MPs and decision making public and private sector members to declare their assets, Minister in the Prime Minister's Department Datuk Seri Shahidan Kassim said all Barisan Nasional MPs have declared their assets to Prime Minister Datuk Seri Najib Abdul Razak.
"We have declared our assets to the PM, and it is not something new," he said.