Tumpat MP Datuk Che Abdullah Mat Nawi says PAS will not support the Sales and Services Tax (SST) as it regards both models as hitting poor Malaysians the hardest. — Picture by Azinuddin Ghazali

KUALA LUMPUR, Aug 8 — Although PAS favours abolishing the Goods and Services Tax (GST), it will not support the Sales and Services Tax (SST) as it regards both models as hitting poor Malaysians the hardest.

Tumpat MP Datuk Che Abdullah Mat Nawi said since both the GST and SST are consumer-oriented taxes, the rich and poor alike are required to pay, which he argues is unfair.

“We rejected the GST due to the mechanisms of its implementation which run contrary to Islamic taxation principles. Despite the exemption on many necessities, the system still burdens the medium and low-income group,” he said.

Che Abdullah said PAS remains firm on highlighting the proposals of incorporating capital gains tax and corporate savings tax into any fiscal system aimed at obtaining national revenue.

“For example, the corporate savings tax has a minimum savings period of one year and is aimed at unproductive wealth.

“Both proposals are meant to ensure the circulation of wealth occurs and that it does not remain solely among the rich,” he said during the debate at the Dewan Rakyat today.

Che Abdullah reminded the Dewan that the Yang di-Pertuan Agong's royal address during the Parliament's opening on July 16 had enjoined them to prioritise looking after the poorest segments of society.

“I hope these will be considered properly by the government. We are always open to any discussions on the capital gains tax and corporate savings tax proposals,” he said.