Saturday, June 8, 2013

Kadar GST 7 peratus lebih sesuai


WARTAWAN SINAR HARIAN
7 Jun 2013

KADAR enam hingga tujuh peratus adalah kadar yang lebih sesuai bagi Cukai Barangan Dan Perkhidmatan (GST) yang dijangka akan dilaksanakan di Malaysia tidak lama lagi.

Pengarah Eksekutif Kanan PricewaterhouseCoopers Malaysia, Wan Heng Choon berkata, kadar GST lebih tinggi daripada empat peratus yang dicadangkan kerajaan akan menjadikan sistem cukai lebih sama rata serta mengatasi masalah defisit negara.

“Kadar GST terlalu rendah tidak akan memberi manfaat kepada negara. Mengikut pandangan Tabung Kewangan Antarabangsa (IMF), kadar GST kurang daripada 10 peratus tidak akan memberi pulangan jangka panjang kepada negara,” katanya semasa bengkel penerangan GST kepada media di Kuala Lumpur, semalam.

GST apabila dilaksanakan akan menggantikan sistem cukai yang diguna pakai Malaysia kini, iaitu cukai jualan dan perkhidmatan (SST) yang dikenakan ke atas barangan dan perkhidmatan tertentu pada kadar lima hingga 10 peratus. 

Menurut Heng Choon, kadar GST yang diperkenalkan kelak juga tidak semestinya tetap dan boleh dinaikkan atau diturunkan mengikut keperluan perbelanjaan negara. 

“Contohnya di United Kingdom (UK) semasa krisis ekonomi melanda Eropah. UK mempunyai kadar GST 15 peratus selama beberapa tahun tetapi apabila negara itu perlukan pendapatan lebih untuk atasi masalah dalam ekonomi mereka, kadar itu dinaikkan kepada 17 peratus sebelum diturunkan semula apabila ekonomi kembali stabil. 

“Ini membuktikan GST lebih berkesan dalam menjana pendapatan negara yang tidak lagi mampu diberikan melalui cukai korporat dan pendapatan,” katanya. 

Beliau juga menekankan pelaksanaan GST jika difahami secara terperinci oleh orang ramai sepatutnya tidak akan membawa kepada kenaikan harga barang tetapi ianya berkesan dalam menutup ketirisan hasil kutipan cukai negara.

PwC: Need to properly educate public on GST


Publication: NST
Date of publication: Jun 7, 2013
Section heading: Business Times
Page number: 004
Byline / Author: By June Ramlee

KUALA LUMPUR: THE Goods and Services Tax (GST) is not well perceived by the public due to a lack of information disseminated by the government.

PricewaterhouseCoopers Taxation Services Sdn Bhd (PwC) executive director R.S. Raja Kumaran said this was the main reason why so many people are not in favour of the GST, which will take effect in 2015.

The GST needs to be explained properly, even to the village folk. They need to be educated on what this means from A to Z.

Many people have the notion that the GST will be implemented alongside the existing sales and services tax, which is not true at all. Once the GST kicks in, the sales and services tax will be abolished, he said after a briefing on the GST to the media at the company's training centre here, yesterday.

In fact, Raja said, the GST should have been implemented yes-terday, during the days when the country's economic stature was at its best.

The present sales and services tax is applicable to a limited number of businesses, whereas more businesses will be covered under the broader GST, which is expected to contribute an additional RM27 billion in tax money.

This (GST) just means better economic management. At pre-sent, there is so much leakage, he added.

However, he said, the poor may face difficulties once the GST is implemented.

He proposed that the government emulates Singapore's move to remedy the situation.

In Singapore, I think they gave cash handouts for 10 years and it was to the tune of S$2,000 (RM4,940) per household, he said.

He said the poor and those earning below RM3,000 a month will definitely need the handouts to ease any financial burdens.

Or the government should look at zeroing the tax rate for basic food and giving tax exemptions on medicine, housing, insurance, transport and toll to help ease the GST pinch. This is because they form a big part of the lower income group's income expenditure, he said.

GST likely in 2015



At least a year’ needed for businesses to make adjustments, says PwC
FRIDAY, JUNE 07, 2013 - 15:57


by Sim Wie Boon
Location:
KUALA LUMPUR


PRECEDENTS: Wan says Australia and SIngapore had implemented the GST in less than 18 months from announcement date — Pic: Hafzi Mohamed

THE Goods and Services Tax (GST) will not be implemented immediately as time is needed for businesses to prepare itself, PricewaterhouseCoopers Taxation Services Sdn Bhd (PwC) senior executive director Wan Heng Choon forecast yesterday.

“Assuming the decision is made by the government to pass the GST bill in the third or fourth quarter, its tax review panel has always maintained it will only allow a maximum of 18 months for businesses to prepare for the new taxes.

Which means that you are looking at somewhere in April 2015 for GST to start.” On concerns raised whether local businesses can adjust, given the 18 month-period may be reduced to 12-15 months, he said: “There are precedents for cases in which GST were implemented in less than 18 months. For example, Australia did it in 14 months while Singapore in 15 months.”

Wan said that as far as the law is concerned, the GST has already been tabled in 2007 and then withdrawn for amendments. However, it is now ready to be put before the parliament for its second reading and adoption.

He noted that the government has already undertaken various awareness programmes such as the introduction of an online portal for GST registration, which have been tested with positive results.

“GST guides were announced by the Customs Department and discussion sessions have been done for the last few years along with courses for tax agents in conjunction with Chartered Tax Institute of Malaysia and Malaysian Institute of Accountants to spread the word.”

While the exact timing for GST charges to kick in has yet to be announced, PwC executive director R.S. Raja Kumaran said: “The government should not implement it early in the year as it be around festive seasons and the start of the school term.”

Friday, June 7, 2013

GST turunkan harga barang, perkhidmatan


2013/06/07 - 06:51:15 AM Ahmad Fiesal Othman | fsal@mediaprima.com.my


Pelaksanaan lebih telus, kos operasi perniagaan lebih rendah

Pelaksanaan Cukai Barangan dan Perkhidmatan (GST) tidak akan menyebabkan kenaikan dalam harga barangan dan perkhidmatan, sebaliknya mampu mengurangkannya kerana ia bakal menurunkan kos operasi peniaga, kata firma percukaian PricewaterhouseCoopers Taxation Sdn Bhd.

Pengarah Eksekutif Kanannya, Wan Heng Choon, berkata GST juga adalah lebih telus dan seragam berbanding cukai jualan dan perkhidmatan (SST) yang dikenakan ketika ini yang mempunyai banyak kelemahan seperti cukai bertindih, cukai berganda dan cukai bertingkat yang menjadi punca harga sesetengah barangan dan perkhidmatan menjadi mahal.

Jaminan pengecualian

“Selain itu, kerajaan juga telah memberikan jaminan akan memberikan pengecualian ke atas barangan keperluan tertentu seperti produk pertanian dan makanan asas jika GST dilaksanakan bagi menggantikan SST,” katanya pada taklimat media mengenai GST di Kuala Lumpur, semalam.

Wan menjelaskan, GST bakal menurunkan kos operasi perniagaan kerana peniaga yang berdaftar boleh menuntut cukai ke atas GST yang dibayar ke atas input perniagaan, selain syarikat yang mencatatkan pendapatan tahunan kurang daripada RM500,000 adalah dikecualikan daripada membayar GST.

“Kos perniagaan akan berkurangan selepas GST menggantikan SST kerana seseorang peniaga itu tidak lagi perlu membayar cukai jualan atas pembelian meja, kerusi dan kemudahan lain, sekali gus boleh menawarkan harga yang lebih murah hasil penjimatan daripada pembayaran cukai itu,” katanya.

Konsep nilai ditambah 

GST adalah cukai kepenggunaan berasaskan kepada konsep nilai ditambah kerana ia dikenakan ke atas barang dan perkhidmatan di setiap peringkat pengeluaran dan pengedaran dalam rantaian pembekalan, termasuk barang dan perkhidmatan yang diimport. 

Perbezaan GST dengan SST ialah dari segi skop pengenaan cukai yang lebih meluas iaitu ia dikenakan pada semua peringkat pengeluaran dan pengedaran di samping peniaga boleh menuntut kredit cukai ke atas GST yang dibayar terhadap input perniagaannya.

Ini berbanding sistem SST yang mana cukai jualan hanya dikenakan pada satu peringkat pengeluaran iaitu semasa barang dikeluarkan daripada kilang atau diimport, sementara cukai perkhidmatan pula dikenakan ke atas perkhidmatan tertentu pada peringkat ia disediakan kepada pengguna.

Wan berkata, Malaysia perlu memperkenalkan GST berikutan kelemahan SST sedia ada yang hanya menguntungkan golongan peniaga, selain ia juga mampu mengurangkan kadar cukai yang dikenakan ke atas pendapatan individu dan korporat.

Faedah seluruh rakyat

Beliau berkata, GST yang sudah dilaksanakan di lebih 140 negara seluruh dunia juga apabila dilaksanakan bukan hanya akan memberi faedah kepada golongan berpendapatan rendah, malah seluruh rakyat selain meningkatkan hasil cukai kerajaan serta mengelakkan ketirisan dalam menjana pendapatan negara. 

Katanya, kira-kira 70 peratus Perusahaan Kecil dan sederhana (PKS) di negara ini dijangka menikmati pengecualian GST, manakala syarikat besar pula akan dikecualikan daripada membayar cukai bagi beberapa yuran profesional.

“Justeru, pelaksanaan GST akan memberikan situasi menang-menang kepada rakyat dan kerajaan,” katanya.

Menteri Kewangan Kedua, Datuk Seri Ahmad Husni Hanadzlah, sebelum ini dilaporkan berkata, kerajaan tidak akan melaksanakan GST dalam masa terdekat kerana masih mengkaji implikasi pelaksanaan serta kadarnya.

Perniagaan Malaysia mahu lebih banyak panduan cukai


6 Jun 2013

KUALA LUMPUR - Majoriti perniagaan di Malaysia mahu bimbingan daripada pihak berkuasa cukai mengenai perancangan cukai yang boleh dan tidak boleh diterima walaupun ia mengurangkan peluang menurunkan liabiliti cukai, demikian menurut kajian terbaru Laporan Perniagaan Antarabangsa (IBR) Grant Thornton.
Penyelidikan berkenaan yang merupakan kajian suku tahunan lebih 3,000 perniagaan di 44 negara, mendedahkan bahawa 68 peratus daripada perniagaan di seluruh dunia ingin lebih banyak bimbingan cukai.
Pemilik perniagaan di Malaysia (92 peratus) mendahului dalam kajian  kategori ini.
Negara-negara jiran seperti Singapura (88 peratus) dan Thailand (74 peratus peratus) menyatakan keperluan mereka untuk mendapatkan lebih banyak kerjasama global dan bimbingan cukai daripada pihak berkuasa cukai.
Pengarah Eksekutif Kanan Cukai Grant Thornton Malaysia Seah Siew Yun berkata mengurangkan liabiliti merentasi sempadan boleh menawarkan penjimatan cukai yang ketara.
"Jadi, adalah menarik untuk melihat bagaimana terbuka pemimpin perniagaan untuk meningkatkan bimbingan dan kerjasama global.
"Di United Kingdom, kes-kes berprofil tinggi baru-baru ini melibatkan Amazon, Google dan Starbucks sudah pasti meningkatkan pendapat orang ramai tentang perancangan cukai yang boleh diterima," katanya dalam satu kenyataan hari ini.
Mengenai apa yang perlu menjadi sumber utama hasil cukai bagi kerajaan, beliau berkata, kebanyakan pemilik perniagaan di Malaysia berkata pada masa ini  cukai syarikat (64 peratus), diikuti oleh cukai barangan dan perkhidmatan (GST) (14 peratus), cukai jualan (10 peratus), cukai pendapatan individu (8.0 peratus) dan lain-lain duti eksais atau bukan cukai (4.0 peratus).
Di peringkat global, kebanyakan menyatakan sumbernya adalah cukai syarikat (25.2 peratus) dan GST (27.4 peratus).
Kaji selidik itu juga mendedahkan bahawa banyak perniagaan di rantau Asean  menimbangkan ketelusan yang lebih lagi dan menjadikan urusan cukai lebih terbuka kepada pelabur.
Perniagaan juga merancang untuk menjadikan urusan cukai mereka lebih telus kepada pelabur, pihak yang berkepentingan dan kepada orang ramai.
Negara-negara di rantau Asean bersetuju bagi lebih ketelusan, dengan Vietnam (94 peratus), Malaysia (92 peratus), Filipina (86 peratus), Singapura (84 peratus) dan Thailand (80 peratus).
Mereka yang kurangnya bersetuju ialah Jepun (7.7 peratus), Estonia (10  peratus), United Kingdom (12.8 peratus), Australia (13.3 peratus) dan Norway (14 peratus). - Bernama

Look into these 5 areas first


Publication: NST
Date of publication: Jun 6, 2013
Section heading: Main Section
Page number: 018
Byline / Author: By Tan Sri Ramon Navaratnam

IT is gratifying that the government has called for budget proposals from the public and also well before budget day this year. It's an open invitation that we should all try to at least think about and communicate to the government.

The 2014 Budget is particularly important because it is the first budget after the 13th General Election when all the government's election promises will have to be addressed. It needs to include new policies and programmes that are transformational and responsive to the needs of the public.

It could pave the way for a new mid-year five-year plan, based on the election promises and feedback from voters who have sent powerful signals to the political leaders from all sides.

What do we want from the 2014 Budget?

FIRST, our economic structure has to be improved. The budget provides the best instrument and occasion to promote higher competitiveness. For this, we have to remove the worst elements of the New Economic Policy (NEP) and move onto the New Economic Model (NEM).

There should not be policies or programmes based on race. The economy has gained much in terms of poverty reduction and Bumiputera restructuring of equity and ownership, thanks to success of the NEP. Many would argue that the 30 per cent Bumiputera equity has already been achieved. An independent review would help to clear the doubts.

Nevertheless, a proper adoption and application of the NEM will strengthen the socio-economic structure of the economy. It will build sustainable growth and equitable income distribution in our economic system. This review should also reject new requests for more than 30 per cent equity for investment and ownership, and for contracts, licences, permits and quotas.

The economy needs structural review and transformation so that we may be able to break out of the middle-income trap that we are now caught in. The 2014 Budget should, therefore, be based on the NEM.

SECOND, the budget's integrity that was compromised through extraordinary expenditures will also have to be restored and strengthened. The first priority will be to aim for greater reduction of the national deficit and national debt.

These two fiscal pillars will need to be reinforced to ensure sustainable growth and fairer income distribution to give a better deal to the poor. We must remind ourselves that even a relatively strong economy like ours can slip pretty fast if we are lax in our fiscal discipline.

THIRD, the goods and services tax will have to be introduced after so many false starts. We can't wait for an ideal political timing. The best time will be the next budget, now that the elections are over.

Lower-income groups can be spared any additional burden if the GST is imposed on higher-priced consumer goods and services.

As in many other countries, goods and services that are considered basic needs could be exempted from taxes or suitable methods devised to reduce the tax burden, through vouchers or 1Malaysia People's Aid.

Similarly, the wide range of subsidies could be kept at a reduced rate for the poor but denied to the higher-income consumers.

FOURTH, the budget should make proposals to slash expenditure waste and corruption.

All government and private sector contracts should be made open, transparent, competitive and accountable so that cronyism can be stamped out.

FIFTH, institutions have to be strengthened further through higher expenditure allocation and greater efficiency. The civil service, judiciary, police and Customs and, particularly, the education sector, have to be made more accountable for the delivery of better service and productivity to society.

The Performance Management Delivery Unit and Special Task Force to Facilitate Business can be given more authority to monitor performance. They can provide advice to the Treasury to cut down or raise expenditure allocations to these institutions, depending on their performance.

Tan Sri Ramon Navaratnam,
chairman, Asian Strategy and Leadership Institute's Centre for Public Policy Studies

Thursday, June 6, 2013

8 ahli sindiket gores dan menang ditahan


Publication: BH
Date of publication: Jun 5, 2013
Section heading: Main Section
Page number: 022

Johor Bahru: Polis Johor berjaya menahan lapan individu berusia 18 hingga 40 tahun disyaki terbabit dalam sindiket gores dan menang yang mengakibatkan kerugian ratusan ribu ringgit.

Ketua Polis Johor, Datuk Mohd Mokhtar Mohd Shariff, berkata kumpulan itu dipercayai bergiat aktif sejak lima bulan lalu dan memperdaya lima mangsa dengan tawaran pelbagai hadiah menarik, termasuk kereta mewah.

Beliau berkata, sindiket itu turut mensasarkan golongan muda, termasuk warga dari Singapura sehingga ada seorang mangsa dari republik berkenaan kerugian lebih RM30,000.

Walaupun sindiket gores dan menang di bawah bidang kuasa Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan, polis turut menjalankan siasatan susulan beberapa laporan mendakwa mangsa dipaksa dan diugut.

Mangsa turut dicedera semalam.

Mokhtar berkata, sindiket itu didapati menggunakan modus operandi membabitkan kad gores dan menang ada tanda tertentu yang hanya diketahui suspek bagi menipu mangsa.

Anggota sindiket ini mendekati orang ramai yang berpotensi diperdaya dengan menjanjikan hadiah menarik seperti kereta dan peralatan elektronik mewah.

Mereka juga menunjukkan beberapa keratan akhbar bagi meyakinkan mangsa dan sebaik saja mangsa terpedaya, suspek akan meminta sedikit bayaran pendahuluan kononnya sebagai kos cukai khidmat kerajaan (GST), katanya.

Wednesday, June 5, 2013

GST: A recipe for economic disaster


Tuesday, 04 June 2013 Super Admin


To stop fiscal policy disaster caused by GST, the government merely need to stop spending, taxing, inflating and interfering in the market economy
COMMENT
By Medecci Lineil

One of the great and striking facts of recent weeks is the growing resistance to further taxes on the part of the long suffering Malaysian public famously known as Good and Services tax (GST) or Value Added Tax (VAT).

This article hopefully will represent an Austrian economics analysis which is based on logic and praxeology (human action).

Unlike the market economy, only government acquires its income by coercive imposition of taxes. Refuse to pay your taxes and you will be thrown in jail. Where the government is there is the power to tax, for they cannot rule without taxation.

As Ludwig von Mises wrote in Human Action “The funds that a government spends for whatever purposes are levied by taxation” Or as Murray Rothbard put it in Man, Economy and State “…all state actions rest on the fundamental binary intervention of taxes…”

We have too many government activities, too much bureaucracy, too many elective officers, too many ballots, too many politicians, too many laws and too many elections. From these alone I can see the growth of government at the expense of others for their own benefit.

Every income, every activity, every piece of property and every person in Malaysia is subject to a package of taxation, direct and indirect, visible and invisible.

Probably Malaysians do not realise that government has done a wonderful public relation job. They call you the taxpayers, not victims and the taxes are somehow collected, not stolen.

Taxes are also called contributions, as if it had been a matter of free choice. I rather would regard my action to donate some money to my church every Sunday as free choice. And when there are the attacks on tax “loopholes” or “avoidance” when you are allowed to keep some of your own money. As Mises said, “it is through these loopholes that capitalism breathes.”

Taxation is the wealth destruction that we are subjected to all year long.

In regard of GST, I feel sad though when the taxpayers “victims” easily become angry with the GST proposal for the wrong reason – they simply hate the ruling Barisan Nasional, that’s it. They still love the brutal government and coercive taxation.

At capitalism camp, we have a different view. Nobody really likes paying their taxes. You have a right to what you earn and keep what you earn. Some of them want lower taxes but I believe most of them want no taxes. Real democracy comes with voluntary action not force and coercive action.

The politicians blab about spending cuts, tax cuts, fighting corruption and leakages but it is all lying propaganda in return of GST implementation.

For me, the spending and tax cut debate is more about politics than serious economics. Some say these will raise revenues by increasing economic activities thus providing government with even more money to spend.

Nothing escapes tax

Some say mega projects should be halted and free corruption before the implementation of GST. Others say lowering taxes and spending cut will simply lower revenues and increase deficits. One thing certain is the ability of government to reach in and openly extract funds from everyone’s income has reached its political limit in Malaysia.

The GST is essentially a consumption tax, a tax on the value added by each firm and business imposed on goods and services produced and sold and purchased by consumers. It is levied at each step of the way in the production process: on the farmer, manufacturer, jobber and wholesaler.

Essentially, every time a producer of goods purchases raw materials, he must pay a percentage tax. When the producer sells his goods to a wholesaler, the wholesaler pays another percentage.

The GST makes every businessman an agent of Lembaga Hasil Dalam Negeri (LHDN). In the end the higher cost of goods is passed down to consumers. So the tax is more politically efficient and insidious.

The only difference is that, before this your dissatisfaction rises and point the finger directly at the politicians in government but now you point the finger at the businessmen and trade unions.

Consumers blame the businessmen for inflation while government escapes the blame and join in to denouncing all of these businessmen for causing inflation. As a result, capitalism again has turned into a dirty practise.

From the perspective of the government, this is a near perfect tax and a revenue generating machine, I believe unmatched by any other form of taxation. Nothing escapes the tax.

It touches every stage in every process from new homes to haircuts and allows the government to keep track of every business’s buying and selling. They want to manage the details of business which is impossible.

The GST is a rare and heinous type of government policy that attacks the structure of production; they also attack the time preference rates. When we speak of structure of production, we also must refer to type of goods in production, how they are valued and used, and more important time consuming roundabout method of production for creation of a product.

Every good in a structure of production takes time and involves different sets of individual’s role. For how long a period (roundabout) of production is limited by time preference rates. Put another way, the GST has the ability to increase in real terms the prices of every good produced and sold.

Each step of each productive process with each subjective value of good becomes less efficient and in this manner, the GST necessarily decreases the material standard of living for all of a nation’s consumers.

Goods are viewed as heterogeneous instead of homogeneous. It means that different goods have varying physical features, uses and attributes to every unique individual.

Products like automobiles, laptops, LCD televisions, furniture that result in consumer goods valued much more highly by consumers than the raw inputs. These products are involved in long roundabout in which businesses and entrepreneurs tend to heavily invest capital and labour. Austrian economics recognises that there is a complex structure of production.

A house, for example, would be a consumer good, in Austrian economics, a good of the lowest order in the capital theory. Numerous goods such as wooden beams, drywall, heavy machines, cement, windows etc must be used in constructing the house.

The goods necessary to produce the wooden beams are hammer, nails and human labour. Without the hammer and nails as necessary goods, there is nothing to produce the wooden beams.

The entrepreneurs meanwhile who involve in long processes roundabout goods would find themselves in very difficult position to stay in competition especially in high living cost and recession environment.

At the other hand, middle and lower income group who wish to demand for these products become less apparent to entrepreneurs, less and less affordable to these groups.

Therefore the entrepreneurs must in an attempt to return to profitability either by decreasing or halt production of these long processes roundabout good or reducing their price to market affordability thus allowing more middle and lower income groups to enjoy them.

But, the GST would make the price reduction, impossible. During recession, the only way for such entrepreneurs facing the GST is to even more intensely halt their production of those goods – the rise of unemployment of labourers within those industries.

The GST is not just a punishment of consumption without any effect on productive efforts, it is also an attack on production as the only means of providing for and possibly increasing standard of living and prosperity.

Not only do all consumers face high prices for goods, but the introduction of GST would tend to alter market signals of consumers’ time preference rates – a proportion of consumption to savings is determined by each individual’s rate of time preference.

Again, time preference we are dealing is subjective in nature. The degree of time preference will differ from one person to person and for the same person will differ from one moment to the next.

Higher time preference is whereby each individual prefers present good to future goods. They therefore consume a greater proportion of their income and save less i.e. leads to a shortening of the period of production.

While lower time preference will tend to consume less now and save more i.e. the roundabout structure of production will be lengthened and consume more time come to fruition.

Keep it simple, children have high time preferences because they are living day to day from one to another. As they become adults, their time preferences fall as they have for future obligations. Old folks have higher time preferences.

Fiscal policy disaster

With the GST in place, it reduces our real income and presently possible level of consumption. It reduces the present incentive for future production (initiated in the past) and therefore also lowers future income (initiated in the past) and the future level of available consumption (initiated in the past). Because potential present consumption is foregone in return for an increase in future consumption.

The GST is challenging free market expression of those preferences. Those preferences that all saving is directed toward enjoying more consumption in the future and lead to a greater supply of consumer goods in the future.

The GST hits both current consumption and future consumption so to speak.

The suggestions and reasons to implement GST are laughable. It’s something like asking someone to review the method of stealing after being ‘unsuccessful’ in the previous method of stealing.

The politicians are purposely ignored and government spending is the problem. Yes, the real issue is total spending by government because all government spending also represents a tax.

Taking earnings out of the economy through taxes is always harmful. Just like in the United States and Japan recently, our politicians claim they have to implement GST to deal with deficits and debt.

With a huge of ‘stolen’ amount, RM27 billion excluding other forms of taxation, this provides a powerful incentive to raise funds by borrowing. Without taxes to pay interest and principal, a government cannot issue large amounts of debt at the expense of future taxpayers.

Politicians are motivated by a desire to finance bigger government i.e. institute programmes that distribute wealth, create dependency, create government support among dependents who fear losing their handouts from the government.

To summarise, the GST would be a fiscal policy disaster. It would guarantee that the government would cripple our people living socially and economically.

There is a very simple way of stopping this horrible outcome. The government merely need to stop spending, taxing, inflating and interfering in the market economy.

Medecci Lineil is a young Austrian libertarian who lives in Kuching, Sarawak. He is also the Association Executive of STEM States.

- See more at: http://www.freemalaysiatoday.com/category/opinion/2013/06/04/gst-a-recipe-for-economic-disaster/#sthash.t7D4DEii.dpuf

Tuesday, June 4, 2013

GST boleh dilaksana bawah 4 peratus


MUHAMMAD SHAMSUL ABD GHANI
3 Jun 2013
GST
SHAH ALAM - Kerajaan disaran memulakan kadar cukai barangan dan perkhidmatan (GST) di bawah paras empat peratus jika ia mahu dilaksanakan dalam tempoh terdekat ini, menurut Ahli Jawatankuasa (AJK) Pas Pusat, Dr Dzulkefly Ahmad.

Hal ini kerana, perkara pertama yang harus dipertimbangkan untuk melaksanakan GST ialah pendapatan rakyat.

"Pendapatan mereka haruslah bertambah baik jika GST dilaksanakan," katanya yang lebih mesra dengan panggilan Dr Dzul kepada Sinar Harian Online.

"Singapura juga bermula dengan tiga peratus manakala cadangan untuk GST di Malaysia tujuh peratus, ini membebankan," tambahnya lagi.

Menurut Dr Dzul, perlaksanaan GST adalah lebih baik daripada sistem cukai jualan dan cukai perkhidmatan (SST) namun beberapa faktor perlu diambil kira sebelum melaksanakannya.

Perkara pertama yang harus diteliti ialah pendapatan rakyat terutama golongan miskin dan sederhana.

Penganalisis berpendapat, pelaksanaan GST, walaupun dapat meluaskan asas kutipan cukai namun ia membebankan golongan pertengahan dan miskin.

Ketua Penyelidikan dan Perundingan Kluster Ekonomi dan Kewangan MPN, Profesor Dr Shazali Abu Mansor berkata, pelaksanaan GST membolehkan cukai dapat diselaraskan secara menyeluruh.

Beliau turut menyarankan ia bermula di bawah kadar lima peratus.

"Namun, pelaksanaan GST ini perlu dikecualikan kepada barang-barang asas seperti gula, tepung, minyak masak, kerana ianya akan membebankan rakyat kelak," katanya.

Mengulas lanjut, Dr Dzul berkata, jika GST mahu dilaksanakan, kerajaan juga harus komited untuk menutup pintu kebocoran dari sudut ketirisan, amalan rasuah, kronisme, dan nepotisme.

“Pada hemat saya kerajaan perlu meningkatkan tahap modal insan dan keterampilan rakyat, kerana ianya sekaligus dapat meningkatkan tahap produktiviti negara dan hasilnya ianya dapat meningkatkan tahap pendapatan mereka,” katanya.

Sementara itu, Pengerusi DAP Selangor, Teresa Kok pula berpendapat, pelaksanaan GST pada waktu terdekat ini hanya akan membebankan rakyat kerana peratusan rakyat miskin di negara ini masih tinggi.

“Tahap kemiskinan di Malaysia masih lagi tinggi, jadi saya lihat perlaksanaan GST akan menekan serta membebankan mereka,” katanya.

Tambah beliau lagi, kerajaan harus mencari makanisme terbaik bagi mengurangkan bebanan rakyat di samping mengawal ketirisan dan kebocoran wang negara bagi meningkatkan lagi tahap ekonomi negara.

“Perbelanjaan kerajaan haruslah berhemah, ketirisan dan kebocoran wang negara mestilah dielak sama sekali, dengan itu saya rasa ekonomi kita akan berkembang dengan lebih baik,” katanya sambil menambah GST hanya akan menyebabkan inflasi berlaku.

Sementara itu, menurut Naib Presiden Pas, Datuk Mahfuz Omar, GST tidak wajar dilaksanakan kerana ianya tidak seiring dengan peningkatan pendapatan rakyat di negara ini.

“Bagi saya GST tidak wajar dilaksanakan, kerana masalahnya sekarang ialah purata pendapatan rakyat Malaysia masih lagi berada ditahap rendah, ini tidak adil bagi mereka, sebaliknya memberi bebanan pula,” katanya.

Dalam pada itu, beliau mencadangkan supaya kerajaan memberi tumpuan kepada bagaimana untuk meningkatkan pendapatan rakyat sekaligus dapat mengurangkan bebanan ekonomi mereka.

“Kerajaan perlu berikhtiar dan mencari jalan terbaik bagi meningkatkan purata pendapatan ekonomi rakyat, bukannya melaksanakan GST,” katanya

GST bukan tambah cukai, rakyat perlu maklumat


ARKIB : 03/06/2013

BERAKHIR sudah Pilihan Raya Umum ke-13 (PRU13) di mana Barisan Nasional (BN) kekal sebagai parti yang mendapat mandat untuk memerintah negara untuk lima tahun lagi. Abaikan tindakan pihak-pihak yang tidak dapat menerima keputusan pilihan raya itu. Rakyat Malaysia seharusnya memberi sokongan kepada pemerintah dalam perkara-perkara makruf sesuai dengan tuntutan agama Islam. Kini BN juga perlu terus fokus untuk melaksanakan 'Aku Janji' mereka semasa berkempen tempoh hari.

Antara fokus kerajaan dalam 'Aku Janji' berkenaan adalah untuk membina ekonomi mapan, dinamik dan inovatif. Ini termasuklah dengan membuat pembaharuan dalam struktur cukai sedia ada ke arah sistem percukaian yang lebih terbuka serta mengurangkan cukai individu dan korporat secara berperingkat-peringkat.

Bukan rahsia lagi bahawa kerajaan sejak tahun 90-an telah bercadang untuk melaksanakan Cukai Barangan dan Perkhidmatan atau Goods & Services Tax (GST) bagi menggantikan Cukai Jualan dan Cukai Perkhidmatan yang sedang diguna pakai kini. Walau bagaimanapun, cadangan ini senyap kerana kerajaan pada masa itu menganggap bahawa rakyat belum bersedia.

Begitu juga sekitar beberapa tahun yang lepas, kerajaan telah menguar-uarkan untuk melaksanakan GST dan undang-undang telah pun dibacakan di Parlimen kali pertama pada tahun 2009. Disebabkan cukai adalah isu sensitif kerana melibatkan 'poket' rakyat, maka pelaksanaannya sehingga kini masih lagi tertangguh.

Kini setelah PRU-13, cakap-cakap mengenai GST kembali muncul. Di pihak kerajaan, menteri telah bercakap mengenai manfaatnya. Manakala di pihak pembangkang pula mula memperkatakan keburukan dan bercadang untuk menghapuskannya. Sama ada GST memberi manfaat atau keburukan, maka maklumat yang tepat haruslah disampaikan kepada rakyat.

Rakyat kini masih lagi berada dalam kesamaran tentang GST. Tidak dapat dinafikan bahawa amat kurang penerangan, kajian serta forum berkaitan GST diadakan oleh kerajaan. Ini mengakibatkan rakyat gagal memahami justifikasi pelaksanaan cukai baru ini tanpa menyedari bahawa lebih daripada 140 negara di seluruh dunia telah melaksanakan GST, termasuk jiran-jiran ASEAN kita seperti Singapura, Vietnam dan Indonesia.

Ramai yang masih tidak tahu bahawa GST akan menggantikan Cukai Jualan dan Cukai Perkhidmatan sedia ada dan bukan menambah cukai sedia ada. Ramai yang masih tidak tahu bahawa pada masa kini mereka sedang membayar cukai walaupun ia tidak dipamerkan di dalam resit-resit pembelian. Masih ramai tidak mengetahui bahawa GST bakal menghapuskan cukai berganda yang mengakibatkan harga barangan menjadi lebih tinggi.

Rakyat terbanyak juga keliru dan tidak dapat membezakan antara Service Tax' dan Service Charge. Ada juga yang keliru apakah Government Service Tax dan GST merupakan cukai yang sama sehingga berlaku 'kekecohan' di laman-laman sosial kerana manipulasi dan kekeliruan maklumat.

Paling merisaukan pengguna adalah kesan pelaksanaan GST ke atas mereka sama ada ia akan menaikkan atau menurunkan harga barang. Di kala kakitangan agensi pelaksana GST diberi kursus bahawa GST bakal dilaksanakan pada kadar permulaan 4%, terdapat pula kenyataan dari menteri yang mengatakan bahawa GST pada kadar 7% bakal memberi impak positif kepada negara. Walaupun saya cenderung mempercayai bahawa beliau mengambil contoh kadar GST di Singapura, tidak dinafikan ia memberi kegusaran kepada rakyat kerana ada yang menganggap kadar itu agak tinggi sebagai permulaan.

Oleh itu, saya menyarankan agar kerajaan melalui agensi-agensi berkenaan menggandakan usaha untuk menyalurkan maklumat kepada rakyat berkenaan GST seperti rencana, kajian, soal selidik, forum, pengalaman negara-negara yang telah melaksanakan cukai ini. Ini termasuklah manfaat-manfaatnya, kaedah cukai ini dikenakan, barangan serta perkhidmatan yang dikecualikan dari cukai dan lain-lain lagi.

Ini penting kerana rakyat perlu mempunyai maklumat yang cukup sebelum menerima sesuatu sistem. Ini diburukkan lagi dengan jentera-jentera propaganda pembangkang yang memanipulasi isu ini untuk meningkatkan populariti dengan memberi gambaran salah tentang GST.

Ini menunjukkan sebenarnya isu GST jika diuruskan dengan baik, bakal diterima dengan baik juga oleh rakyat. Ini termasuklah fakta kajian yang dipaparkan di laman sesawang GST bahawa akan berlaku purata penurunan harga barangan keperluan jika GST dilaksanakan. Sebagai langkah tambahan, kerajaan juga harus mengeluarkan harga 'simulasi' barangan keperluan di Malaysia jika GST dilaksanakan. Ini bakal meningkatkan kefahaman dan sokongan rakyat terhadap pelaksanaan GST.

KHAIRUL AZHAR
Klang, Selangor

Artikel Penuh: http://www.utusan.com.my/utusan/Forum/20130603/fo_02/GST-bukan-tambah-cukai,-rakyat-perlu-maklumat#ixzz2Wd7vOiDl
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Monday, June 3, 2013

GST – the political TNT


Posted on 2 June 2013 - 08:27pm
Tan Siok Choo

IMPROPERLY managed, the plan to introduce in Malaysia the much postponed goods and services tax – popularly known as GST – could be political TNT.

Economically, the case for introducing GST in this country is strong. Admittedly, there are drawbacks but these are likely to be short-lived. For example, the administrative costs for businesses required to collect the tax can be cumbersome; with time, this could become easier.

More important, the debate should be framed in rational terms. Unfortunately, the GST issue has now become highly politicised.

Exacerbating this issue is the government's failure to present cogent arguments in favour of GST. If their efforts to explain this issue could be graded, they deserve an E – mainly for effort rather than effectiveness.

Thankfully, the government has announced GST won't be implemented immediately. And before arriving at a decision, it will engage politicians – hopefully this includes those from the sometimes obstreperous opposition – businesses and the public.

Meanwhile, several Pakatan Rakyat politicians have seized on the GST issue with the avidity of treasure hunters believing they have located a super-rich gold mine.

Some Pakatan members of Parliament have suggested GST would be unnecessary if corruption in Malaysia is eradicated. This argument is a distraction – because the two issues are unrelated.

No doubt Malaysia must take tougher action to combat corruption. Instituting open tenders and requiring more disclosure on government procurement projects, for example, are necessary – but this doesn't eliminate the need for GST.

Take the case of Singapore. In April 1994, it levied a 3% GST even though government finances were (and still are) healthy.

An even more relevant example for Malaysia is Norway. In 1990, oil producer Norway implemented GST – notwithstanding its long record of fiscal prudence and probity. That same year, Norway created an oil fund to invest current earnings from oil and gas for the benefit of future generations

Perennially top-rated as corruption-free countries, Singapore was ranked 5th and Norway 7th in Transparency International's 2012 Corruption Perception Index.

Furthermore, GST – also known as value-added tax or VAT, is the norm worldwide – with some singular exceptions like the oil-soaked Middle East and Brunei, the United States, Hong Kong and tax havens like the Bahamas.

GST offers five possible benefits.

First, because GST is difficult to avoid, it is a highly efficient system of taxation. In contrast, corporate and personal taxes can be either avoided or significantly minimised.

In Malaysia, only 1.7 million individuals paid income tax despite a workforce of 12 million. In an earlier article, I wrote this miniscule proportion suggests either Malaysia is full of artful tax dodgers or the salaries of 91.7% of employees are below the threshold of taxable income.

Releasing data showing how many of the 1.7 million taxpayers are salaried workers who don't have the financial means to hire advisers to minimise their taxable income could be immensely persuasive.

Second, if levied, GST won't be an additional tax. Instead, GST will replace the existing sales and services tax while the revenue generated should enable the federal government to reduce successively the current high level of corporate and personal taxes.

Again Singapore provides an excellent role model. From 3% GST, the republic progressively raised its GST to the current 7% level. During the same period, it has slashed personal and corporate tax rates to 20% and 17% respectively – among the lowest worldwide.

Third, GST will enhance the competitiveness of business because it is levied only on the value added. For every input purchased, manufacturers can claim a refund from the Treasury. This multi-credit system means the real taxpayers of GST are the end-users.

Fourth, because GST is a tax on spending rather than income, it is theoretically fairer than a pay as you earn tax (PAYE) system. Those who buy more goods and services will pay more GST.

Fifth, VAT could also give a fillip to tourism. Tourists visiting the UK, France, Singapore and Thailand, for example can get a VAT refund.

To offset administrative costs, most retailers in these countries require a minimum level of purchases before doing the paperwork for tourists claiming a refund.
Additionally, Singapore only allows those who leave the republic by air to claim a GST refund.

Many oppositionists claim GST is inflationary and regressive because it will hurt disproportionately the poor.

This can be partially offset by direct payments to the poor – like the BR1M aid of RM500 – while essential goods and services could be exempted. Singapore's GST experience also suggests the inflationary impact is likely to be temporary.

Because it is now a political issue, the government must adopt a two-track approach towards implementing GST. It must demonstrate its determination to crack down on corruption and it must engage in a dialogue with all stakeholders.

Preparing Malaysians for an oil-less future – including implementing GST – should begin soon.

Opinions expressed in this article are the personal views of the writer and should not be attributed to any other organisation she is connected with. She can be contacted at siokchoo@thesundaily.com

Sunday, June 2, 2013

GST untuk laksana janji PRU BN?


Muhammad Faeez Azahar,02 Jun 2013
IPOH: Dewan Pemuda PAS Perak menyifatkan perlaksanaan cukai barangan dan perkhidmatan (GST) di negara ini adalah cara kerajaan untuk mengutip dana bagi merealisasikan segala janji pada PRU13 lalu.

Bendaharinya, Ustaz Fakhrulrazi Mokhtar(gambar) berkata, BN sangat terdesak untuk menunaikan pelbagai janji termasuklah Bantuan Rakyat 1 Malaysia (BR1M) yang masih ditunggu-tunggu oleh rakyat.

Menurutnya, BN mengakui perlaksanaan GST sangat memberi kesan kepada masyarakat khususnya orang miskin namun itu adalah cara untuk mereka mencari dana bagi menunaikan segala janji.

“Mereka terdesak untuk tunaikan janji-janji mereka pada PRU13 lalu terutama pemberian BR1M, oleh itu mereka terpaksa ‘merompak’ rakyat secara tidak disedari melalui cukai GST,” katanya kepada media.

Fakhrulrazi menjelaskan, perlaksanaan GST adalah strategi mudah untuk BN meluaskan kutipan cukai meskipun mereka tahu kaedah tersebut merupakan satu kezaliman kepada rakyat Malaysia.

Katanya, negara ini tidaklah terlalu terdesak untuk mengukuhkan ekonomi memandangkan Malaysia mempunyai hasil mahsul yang cukup banyak.

“Negara ini mempunyai pelbagai hasil mahsul yang boleh menjana pendapatan Negara, justeru tidaklah terlalu mendesak sampai sanggup menzalimi rakyat dengan melaksanakan satu sistem cukai yang sangat membebani rakyat.

“Jika negara ini tidak mengamalkan pemerintahan yang korup dan pemimpinnya amanah, sudah pasti ekonomi dapat dijana dengan lebih baik,” jelasnya lagi.

Kata beliau, dengan perlaksanaan cukai ini, semua rakyat terpaksa menanggungnya termasuklah golongan berpendapatan rendah dan sederhana yang sudah pasti sangat terbeban lebih-lebih lagi dalam suasana kos taraf hidup yang semakin meningkat.

Justeru, beliau berkata, kerajaan dibawah pimpinan Dato’ Seri Najib Razak tidak seharusnya meneruskan hasrat untuk melaksanakan cukai tersebut.

“Cukuplah dengan beban yang telah dipikul oleh rakyat, jangan terus menzalimi rakyat dengan perlaksanaan cukai ini.

“Rakyat dalam keadaan sangat terbeban, seharusnya kerajaan mengurangkan beban rakyat, bukannya terus membebankan rakyat,” tegasnya lagi.

Pelaksanaan GST luaskan kutipan cukai namun bebankan rakyat miskin


MUHAMMAD SHAMSUL ABD GHANI
1 Jun 2013
GST
SHAH ALAM – Pelaksanaan cukai barangan dan perkhidmatan (GST) di negara ini akan meluaskan asas kutipan cukai namun akan membebankan golongan pertengahan dan miskin.

Menurut Timbalan ketua Kluster Ekonomi dan Kewangan Majlis Profesor Negara (MPN), Profesor Dr Nor Ghani Md Nor, pelaksanaan GST memerlukan makanisme yang terbaik bagi membolehkan golongan pertengahan dan miskin tidak dibebankan apabila dilaksanakan kelak.

“Saya lihat daripada aspek keadilan sosial, jika GST dilaksanakan, semua orang terpaksa membayar cukai, ini termasuklah golongan sederhana dan miskin,” katanya ketika dihubungi Sinar Harian Online, hari ini.

Tambah beliau lagi, makanisme terbaik bagi kerajaan adalah mengawal ketirisan dan kebocoran pendapatan negara, jika kerajaan bersungguh-sungguh untuk meningkatkan tahap ekonomi negara.

“Jika kerajaan ingin meningkatkan tahap ekonomi negara, saya rasa cara terbaik adalah dengan mengawal ketirisan dan kebocoran yang berlaku, dengan cara ini saya rasa ekonomi kita akan bertambah baik,” katanya lagi.

Khamis lalu, Menteri Kewangan Kedua Datuk Seri Ahmad Husni Hanadzlah berkata kerajaan tidak akan melaksanakan GST dalam tempoh jangka terdekat kerana ia masih mengkaji kesan dan kadar yang akan dilaksanakan.

Menurut Ahmad Husni lagi, kerajaan masih berunding dengan ahli politik, sektor swasta dan awam sebelum membuat apa-apa keputusan.

"Kami masih belum memutuskan mengenai GST kerana kami perlu mengkaji semula perkara itu dan kami kini sedang di dalam proses mengkajinya dari sudut yang menyeluruh.

"Semua tindakan yang diambil perlu dilihat bukan sahaja dari segi perolehan kerajaan, malah perlu dilihat dari segi kemakmuran orang ramai," katanya .

Katanya lagi, selain menjana pendapatan negara, pelaksanaan GST itu juga adalah sejajar dengan hasrat kerajaan untuk mengurangkan cukai korporat dan cukai peribadi.

Sementara itu, Ketua Penyelidikan dan Perundingan Kluster Ekonomi dan Kewangan MPN, Profesor.Dr Shazali Abu Mansor berkata, pelaksanaan GST membolehkan cukai dapat diselaraskan secara menyeluruh.

Hal ini kerana, pada pendapat beliau, perlaksanaan GST akan membolehkan ekonomi negara bertambah makmur dan baik.

“Saya rasa tiada sebab untuk orang mempertikaikan perlaksanaan GST kerana ianya untuk kepentingan ekonomi negara,” katanya.

Namun katanya, pelaksanaan GST ini perlu dikecualikan kepada barang-barang asas seperti gula, tepung, minyak masak, kerana ianya akan membebankan rakyat kelak.

Ketika ditanya mengenai kadar perlaksanaan GST untuk peringkat permulaan beliau menjawab, sebaik-baiknya di bawah daripada lima peratus.

“Saya rasa perlu bermula di bawah lima peratus, kerana ianya tidak membebankan,” katanya lagi.

Tidak perlu tergesa-gesa laksana GST


Publication: BH
Date of publication: Jun 1, 2013
Section heading: Main Section
Page number: 018

Kuala Lumpur: Kerajaan perlu diberi masa secukupnya untuk menjalankan kajian terperinci mengenai pelaksanaan Cukai Barangan dan Perkhidmatan (GST).

Presiden Persatuan Pedagang dan Pengusaha Melayu Malaysia (PERDASAMA), Datuk Mohamed Izat Emir, berkata kerajaan juga tidak perlu tergesa-gesa jika persiapan menghadapi pelaksanaan GST itu belum lengkap.

Kerajaan mampu mengatur program bagi memastikan pelaksanaan GST memberi kesan positif dan dimanfaat rakyat, katanya ketika dihubungi BH, semalam.

Kaji implikasi

Beliau mengulas kenyataan Menteri Kewangan Kedua, Datuk Seri Ahmad Husni Hanadzlah, yang dipetik berkata, kerajaan tidak akan melaksanakan GST dalam masa terdekat kerana masih mengkaji implikasi pelaksanaan serta kadarnya.

GST adalah cukai kepenggunaan berasaskan konsep nilai ditambah kerana ia dikenakan ke atas barang dan perkhidmatan di setiap peringkat pengeluaran dan pengedaran dalam rantaian pembekalan, termasuk barang serta perkhidmatan yang diimport.

Jika dilaksanakan, ia akan menggantikan cukai kepenggunaan sedia ada.

Izat berkata, pihak lain tidak perlu mengkritik objektif mulia yang sedang diatur kerajaan, sebaliknya memberi peluang program itu dirangka hingga selesai.

Sementara itu, Naib Presiden Usahawan dan Industri ICT Bumiputera Malaysia, Ir Aziz Ismail, berkata rakyat perlu sedar faedah yang akan diterima jika GST dilaksanakan kelak, bukan hanya memikirkan harga barangan dan perkhidmatan yang meningkat selepas pelaksanaannya.

GST – Gigit Sampai Tulang



Selena Tay
| June 1, 2013
GST will tax everyone regardless of whether the person is rich or poor when in fact the poor should be allowed to escape this dragnet.
COMMENT
Now that the kid gloves have been taken off, the BN federal government is going to launch a major offensive against the rakyat, especially the low-income group although not in the immediate future.

And this major offensive is none other than the Goods & Services Tax (GST).

According to Dzulkefly Ahmad, the former Kuala Selangor MP and the current PAS research director, the rate of 7% which is mentioned recently is very high and shows Prime Minister Najib Tun Razak breaking his promise when the earlier figure given was 4%.

Dzulkefly opined that “7% is proposed perhaps because the prime minister has only just woken up to the fact that the national debt is nearing the ceiling set by parliament which is 55% of the GDP. Or perhaps the prime minister is unhappy with the rakyat for denying him the two third parliamentary majority besides still voting for Pakatan Rakyat (PR) in Selangor”.

(PM Najib had vowed to regain the 2/3 majority and recapturing Selangor before the 13th general election.)

One has to take note that Singapore whose citizens earn nearly twice more than Malaysians had started their GST at the rate of 3%. Still, Singapore experienced inflation at 3% for three consecutive years after the implementation of GST. Currently Singapore’s GST stands at 7%.

If BN leaders want to adopt the Singaporean GST rate, then they should also follow Singapore’s strict laws in curbing corruption.

In principle, Pakatan leaders do not reject the implementation of GST but is of the firm stand that it can only be implemented when a significant proportion of Malaysians are earning well. It is a known fact that Malaysian wages have only rose at 2.8% for the last decade and this was reported by the World Bank itself.

On the other hand, Dzulkefly noted that the prime minister is still delaying the implementation of the minimum wage policy.

“To increase the nation’s revenue, corruption and cronyism has to be seriously curbed while the monopolies, oligopolies and cartels have to be re-structured,” added Dzulkefly.

The rakyat’s disposable income must be increased and if there is GST, the low-wage earner who is currently earning RM800 per month will be unable to save anything while the person who is earning RM6,000 a month will not feel the pinch.

Therefore, GST will burden the low-wage earner and it is thus a regressive tax because the poorer the person is, the more he is taxed as GST will take up a large proportion of his expenditure through taxes incurred on purchases while under the current system he is not taxed at all.

GST will tax everyone regardless of whether the person is rich or poor when in fact the poor should be allowed to escape this dragnet.

A cunning move

GST must not be implemented as long as the BN federal government still fail to stem the leakages and prevent the wastages that are occurring daily in its administration and reported in the annual Auditor-General’s Report.

Dzulkefly warned the BN federal government not to deceive the rakyat again after deceiving the gullible voters in the 13th general election.

PAS Temerloh MP, Nasruddin Hassan Tantawi is disappointed that even without the two third parliamentary majority, PM Najib is still determined to push ahead with the implementation of GST.

“The BN federal government is stubbornly insistent on GST because it will bring riches into the nation’s coffers amounting to RM27 billion but will this benefit the rakyat?” questioned Nasruddin who also stressed that GST will burden the poor.

DAP’s Petaling Jaya Utara MP, Tony Pua is of the view that it is pointless to implement GST to fill up the nation’s coffers when the twin ills of corruption and cronyism continue unabated.

His DAP colleague, Lim Guan Eng the Penang Chief Minister who is an accountant by profession has calculated that it is possible for the BN federal government to give RM1,200 per household under the BR1M programme when the government has taxed RM5,000 per household via the GST and has labelled the GST a cunning move to regain much more than what has been given out.

PKR’s Wong Chen, the Kelana Jaya MP remarked that GST will be a terrible burden for the poor because the poor cannot afford to pay taxes but when there is GST they will be taxed as well.

Prices of goods will definitely soar after the implementation of GST and if the RON 95 petrol price goes up too, the low-wage earner is in for very tough times ahead.

PAS deputy president, Mohamad Sabu who is popularly known as Mat Sabu has lambasted the rural voters who had voted for BN despite repeated warnings from Pakatan leaders on this GST issue because due to their votes, the urban poor (and there are many of them) will suffer under the GST which has been labelled as Mat Sabu as BN’s 13th general election gift to the rakyat.

Now we will not be able to benefit from the goodies promised in Pakatan’s manifesto such as cars priced at RM25,000, the reduction of RON 95 petrol price, the abolition of toll charges, the reduction of electricity rates, the abolition of student loans and the AES (Automated Enforcement System) and other people-friendly policies, all because of the unwise and gullible minority! What a bummer!

Selena Tay is a DAP member and a FMT columnist.

- See more at: http://www.freemalaysiatoday.com/category/opinion/2013/06/01/gst-gigit-sampai-tulang/#sthash.zm4aBFVu.dpuf