How does Najib justify GST by comparing Malaysia to other nations?

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Najib Razak Justifies Goods and Services Tax by Citing International Adoption and Economic Necessity

Datuk Seri Najib Razak asserted that the introduction of the Goods and Services Tax (GST) in Malaysia was not a consequence of poor governance or issues related to 1MDB, but rather a necessary fiscal measure supported by global precedent. He highlighted that 160 countries worldwide, including developed economies such as England, France, Germany, and Canada, have implemented similar tax systems. Furthermore, he pointed to Saudi Arabia, a significant oil producer, as another nation that has adopted the GST, underscoring its widespread acceptance across diverse economic landscapes.
Global Precedent for GST Implementation

Najib Razak's defence of the GST prominently featured its adoption by a significant number of nations. He stated that 160 countries globally have introduced this tax, providing a broad international framework for its legitimacy. The inclusion of advanced economies like England, France, Germany, and Canada in this list served to position Malaysia's move towards GST within a context of established fiscal practices among developed nations. The reference to Saudi Arabia, a major oil exporter, further aimed to illustrate that the GST is not solely a measure for countries heavily reliant on non-oil revenue.
Addressing Malaysia's Revenue Decline

A key component of Najib's justification involved the economic challenges faced by Malaysia, particularly the impact of declining global oil prices. He explained that in 2014, a drastic fall in oil prices led to a revenue drop exceeding RM40 billion, which significantly affected the funding of the civil service and the provision of basic public services. This substantial revenue shortfall, he argued, necessitated alternative revenue streams to ensure the continuity of essential services that would otherwise have been curtailed.
GST as a Means to Safeguard Quality of Life

Najib Razak contended that the GST played a crucial role in safeguarding the quality of life for Malaysians. By providing a more stable and diversified revenue base compared to the volatile oil industry, the GST enabled the government to continue funding critical services. He implied that without the revenue generated by the GST, the nation's economy would have been crippled, and the populace would have suffered from the cessation or reduction of public amenities and support systems.
Opposition's Stance on GST

In his statement, Najib also addressed the opposition's position on the GST, accusing them of misrepresenting its purpose. He claimed that the opposition had previously indicated their intention to retain the GST if they were to assume power, suggesting hypocrisy in their current criticisms. He further alleged that former prime minister Tun Dr Mahathir Mohamad was compelling other opposition leaders to make false promises about abolishing the GST, driven by a desire to topple the government rather than a genuine concern for the nation's economic stability.

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How does Najib justify GST by comparing Malaysia to other nations?

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