PUTRAJAYA: An increase in the Goods and Services Tax rate is not “on board” as the Government looks for measures to sustain the economy following the drop in oil prices, says Datuk Seri Najib Tun Razak.
The Prime Minister said this was not being considered as the Government felt that the people would not be able to absorb further increases and did want to burden the people further.
â€Ž”We are not envisaging an increase in GST. I don’t think the people have the capacity to absorb any increase in GST.
“It is not on the table,” he told a media conference on Friday.
â€ŽNajib, who is also Finance Minister was asked if the Government would consider increasing the GST rate to sustain revenue should oil prices drop further.
He had earlier met with captains of industry, economists and analysts to seek their views and feedback on the plan to recalibrate the 2016 Budget.
Najib will present adjustments to the Budget on Jan 28.