PUTRAJAYA: Malaysia's Prime Minister Najib Razak said on Sunday (Mar 11) that the country would "become a deficit country" if it did not have the revenue it collects from the goods and services tax (GST).
"If the opposition wants to abolish the GST to be replaced with the SST (sales and services tax), that’s a lie. If we cannot get a revenue of RM45 billion (US$11.5 billion), the country will become a deficit country," he said.
"We know that the country’s debt is getting worse but if there is no revenue, the country’s debt will increase and become as in Greece."
Mr Najib added that without GST, it would be unlikely that Malaysia could collect a revenue of RM45 billion annually, which he said was being returned to the people via things like educational aid, assistance to smallholders and the 1Malaysia People's Aid (BR1M).
Malaysia's opposition Pakatan Harapan on Thursday launched its 60-point election manifesto, pledging to abolish the goods and services tax which Malaysia implemented in April 2015.
Malaysia’s GST rate is among the lowest in the world at six per cent, said Mr Najib.