Sheriff Kassim : cakap cakap : GST
Of course, the civil servants always seek approval from their political masters on the framework of the budget or the five-year development plan because while they are the workhorse, the politicians have to take the responsibility for any budget policy. . If it’s good, the political masters get the credit. If it’s bad, they take the blame.
An example was the GST. It was a tax which the Treasury and Bank Negara officers pushed very hard after wide consultations with experts both within and outside the country in the late 1980s in the wake of the 1985/86 twin deficit recession, the first recession caused by budgetary shortfalls due to falling commodity prices.
The GST was announced in the 1991 Budget but was quickly withdrawn because of political objections.
It took several years before it came back again in 2014. And then abolished by the PH when they came into power.
I think if revenues fall to make the fiscal deficit rise to alarm the market and the ringgit falls as a result of concerns over the country’s financial stability, the politicians will turn to GST again to restore confidence in the economy.
In fact, several financial analysts call for the GST to be restored. I hope their call will come true and vindicate what the civil servants initiated years ago.