Posted on May 19, 2013, Sunday
KOTA KINABALU: The people’s worst nightmare is coming true with the imminent introduction of the goods services tax (GST) at seven per cent which amounts to an annual tax of RM1,000 for every man, woman and child in this country of 29 million people, Sabah Progressive Party vice-president Don Chin Hon Kiong said yesterday.
He was commenting on the statement by Minister in the Prime Minister’s Department, Datuk Seri Idris Jala that the proposed GST at 7% would guarantee RM 27 billion in revenue.
“The current Sales Tax, upped from 5% to 6% last year, is already punishing businesses. Sales Tax and GST essentially turn the businesses into tax collectors for the government. Being an expenditure tax, GST jacks up the prices of goods and services.
“First to be hurt are the ordinary people followed by a downturn in business turnover which in turn dampens an already weak economic environment,” reasoned Chin who has been in the private sector for 30 years.
“Bearing in mind that this BN government only got 47 per cent of the popular vote, such new taxes which were omitted in the BN manifesto in the general elections earlier this month, would push even more people to withdraw their support and co-operation with this government.
“This reminds the people of the sudden, dramatic post-election increase in fuel prices of RM1 per litre (diesel) and 74 sen (petrol) in June 2008 which triggered a fresh round of inflation that has stayed with us till today,” said Chin.
Read more: http://www.theborneopost.com/2013/05/19/gst-a-peoples-nightmare-comes-true-sapp/#ixzz2WjSkoDeV
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