Putrajaya has spent RM800 million on flood relief efforts – which is why we need the GST?

The Federal Government has spent a staggering RM800 million so far to help flood victims on the peninsular east coast and other states affected by the record floods, said Deputy Finance Minister Ahmad Maslan. 

He said the money was spent on getting food supplies, laying out logistics, and cleaning affected homes and areas.

“The government is also preparing for a contingency provision should a second wave of floods hit the country,” he told The Rakyat Post yesterday. 

Ahmad Maslan added that the Federal Government was preapred to assist flood victims but that assistance could only be handed out after a complete list of those affected by the floods has been drawn up. 

He also said that Putrajaya would ultimately need billions of ringgit to provide assistance to flood victims and to rehabilitate affected areas while rebuilding lost or damaged infrastructure. 

He did not miss an opportunity to link the Federal Government’s need for emergency funds with the impending introduction of the Goods and Services Tax. 

“It is fortunate that the government will be implementing the goods and services tax (GST) as this will help increase revenue.

“I therefore urge the rakyat to accept the implementation of the GST in good faith as a bulk of the tax collected will be utilised for restoration work and assist victims affected by the floods.”