PN’s GST flip-flop fuels doubts about its policy direction, says analyst

PN leaders are simply seeking political mileage with their narratives on the GST, says an analyst.

PETALING JAYA: Internal disagreements among Perikatan Nasional (PN) leaders over the goods and services tax (GST) may fuel public doubts about the coalition’s cohesion and policy direction, according to analysts.

Ariff Aizuddin Azlan.

Political commentator Ariff Aizuddin Azlan said PN chairman Muhyiddin Yassin’s call for the government to reinstate GST at an affordable rate stands in contrast to remarks previously made by Bersatu Youth chief Hilman Idham and PAS information chief Ahmad Fadhli Shaari.

Earlier, both Hilman and Fadhli insisted on social media that the opposition was not advocating for the return of GST.

Instead, they claimed various government party leaders, including Umno, were the ones calling for its reintroduction, in response to comments made by Prime Minister Anwar Ibrahim about the sales and service tax (SST).

“Unresolved differences in opinion within PN surrounding the reintroduction of the GST may potentially impair perceptions about the coalition.

“PN will be seen as ‘flip-flopping’ on such a big matter,” Ariff of Universiti Teknologi Mara told FMT.

Mazlan Ali of Universiti Teknologi Malaysia said such contradictions would confuse the public and show that the opposition does not know the country’s taxation system well enough.

Mazlan Ali.

“It is as if there is no consensus, no unity of opinion within PN,” he said, adding that various problems could arise from the resulting confusion.

“The public will question whether PN is capable of addressing the tax system in its manifesto,” he said, adding that these differences of opinion within the coalition will likely affect its chances at the next general election.

Yesterday, Muhyiddin urged the government to engage with stakeholders with a view to reintroducing the GST at a reasonable rate so as not to burden the people.

The former prime minister claimed that, unlike the GST implemented by the former Barisan Nasional government in which he served, the SST has had a negative impact on the people and the economy.

The GST, introduced on April 1, 2015 at 6% when Najib Razak was prime minister was abolished after Pakatan Harapan (PH) 1.0 led by Dr Mahathir Mohamad wrested control of Putrajaya three years later.

Meanwhile, Azmi Hassan of Akademi Nusantara claimed PN was merely harping on the issue for political mileage.

He said tax issues are often used by the opposition as a weapon, and were relied on by PH and Bersatu when they toppled the BN government in 2018.

“Tax system issues seem to be a platform for political parties to attack their opponents. PN’s actions today are only geared towards deriving political benefits from the matter,” he said.