No tax hike expected in 2018 Budget

KUALA LUMPUR, 29 Sept 2017: 

The government is not expected to increase any taxes in the 2018 Budget and burden the people who are already facing issues concerning higher cost of living, says Second Finance Minister Datuk Seri Johari Abdul Ghani.

“We have no plan to tax the people further, suffice for now, I think the people are also facing a lot of pressure.”

He believed Prime Minister Datuk Seri Najib Tun Razak would, this time around,  look at ways to help the people mitigate the higher cost of living under next year’s budget.

“But, we have to look at our revenue as well.”

Johari believed that the country’s fundamentals remained strong, judging from the improving exports, trade value, gross domestic product growth, and stabilised global crude oil prices.

“Every time crude oil prices go up US$1 per barrel, the government’s revenue will go up by about RM300 million.”

Currently, the average crude oil price stands at US$57 per barrel from US$54 per barrel last year.

However, he said the government also had to take into account external factors such as the current geopolitical tensions between North Korea and the US.

“This creates uncertainty in the global economy, especially the regional economy, as we are located closer with the country (North Korea).”

– Bernama

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