Najib lashes out at opposition for linking GST to 1MDB

PETALING JAYA: Datuk Seri Najib Abdul Razak has lambasted the opposition for claiming that the Goods and Services Tax (GST) was introduced to cushion 1Malaysia Development Berhad's (1MDB) losses.
The Prime Minister said the baseless allegation was just another attempt by the opposition to win support despite fully understanding the true reason behind the implementation of GST and repeatedly saying they would keep the tax should they win the elections.
Najib pointed out how the government was forced to introduce the tax in April 2015 due to the plummeting global oil price, which caused the country RM40 billion in 2014.
"Realising this, GST was much needed to ensure public services and basic facilities could be continued.
"Until today, the quality of life of our people can still be maintained due to the GST. The fact is, no tax is ever popular no matter how much development and services come out of it," he posted on his blog today.
Najib also took a swipe at former premier Tun Dr Mahathir Mohamad, claiming that the elder statesman's obsession at toppling the Barisan Nasional (BN) government had even made him force the opposition to lie to the rakyat about abolishing the tax.
"This is despite everyone realising that without a source of income to replace our oil revenue, our economy will be paralysed and the rakyat will suffer.
"But Dr Mahathir doesn't care, as long as he can topple the government. I hope Malaysians will reject these lies that are only meant to gain support, but without feeling any responsibility towards the country and the people," he said.
Opposition leaders had, last week, claimed that it was because of the state investment arm 1MDB that the country lacked funds, and resorted to implementing the GST.
Dr Mahathir, in a blog post yesterday, also said that the debts incurred by the federal government would be shouldered by the rakyat, suggesting that taxes like GST would be further increased.