The current sitting of Parliament will approve the reversion to the SST regiment next week. The SST will take effect on Sept 1 this year.
“PBS will wait and see if prices drop, as promised by the federal government,” said PBS secretary-general Johnny Mositun when addressing party leaders and members of the party’s Liawan division here today.
“That was a pledge made by the Pakatan Harapan (PH) government when seeking the people’s mandate in the 14th general election.
“The onus is now on the PH government to make good on its promise.”
Mositun said the previous government had opted for GST because it was a more efficient system and provided a wider tax base, resulting in more revenue for the government.
“Even Lim Guan Eng, the new finance minister, concedes this now.
“But since Pakatan Harapan had successfully used the abolition of GST as an election promise, the government is going ahead with it.
“I believe it will slow down the country’s economic growth,” he said.
Mositun said the next few months would show if SST would actually see a general lowering of prices for consumer goods.
However, he doubted whether it would make any significant contribution towards lowering the overall cost of living for the man in the street.
“And it must be noted that tax revenue will fall by RM21 billion (compared with GST).
“Some of this can be compensated by better earnings from exports of commodities like oil for which prices are rising, but what if things suddenly change? What can we fall back on?”
Mositun said the year ahead was full of uncertainties and the people should prepare themselves for any eventualities.
He also pointed out that the political situation in Sabah had not quite settled down and PBS was very concerned about the political and economic stability.
“Without prejudice, the state’s administration, its economy and the pace of development had been very good up till GE14.
“Can this new administration under the Parti Warisan Sabah leadership sustain that? That’s what PBS is most concerned about.
“Whichever party is in charge, PBS wants to see Sabah prosper and develop.
“That is our concern, and we will continue to play our role in safeguarding the rights and welfare of our people,” he concluded.