Saturday, April 12, 2014

Guna Media Sosial Terangkan Tentang GST

mynewshub

April 12, 2014

KUALA LUMPUR – Kerajaan perlu memperhebatkan lagi penerangan tentang Cukai Barang dan Perkhidmatan (GST) kepada orang ramai terutama golongan muda negara melalui media sosial.

Ia berikutan tinjauan Pemuda UMNO baru-baru ini mendapati masih ada golongan muda menganggap penguatkuasaan GST tidak memberi faedah kepada kerajaan secara keseluruhan.

Naib Ketuanya, Khairul Azwan Harun berkata, tinjauan itu juga mendapati kebanyakan responden memilih penerangan GST perlu dibuat melalui media sosial dengan mengekalkan penerangan melalui media arus perdana.

“Mereka memilih Facebook sebagai saluran utama dan diikuti televisyen, laman web, surat khabar dan radio menjadi pilihan yang terakhir.

“Tinjauan oleh Akademi Pemuda UMNO itu mengambil dua kaedah pendekatan iaitu Tinjauan Umum dan Kajian Sentimen Media Sosial antara Oktober hingga April lalu,” katanya melalui satu kenyataan media semalam.

Mengulas lanjut, Khairul Azwan berkata, antara yang menjadi kehendak generasi muda berhubung pelaksanaan GST adalah memastikan penurunan cukai individu manakala insentif cukai ditambah dari semasa ke semasa.

Menurutnya, beberapa isu lain yang harus diberi tekanan adalah memastikan isu-isu ketirisan dalam Laporan Ketua Audit Negara dikelola dengan lebih baik dan pengecualian GST ke atas bil perkhidmatan internet.

Justeru, katanya, Pemuda UMNO akan sedaya upaya membantu pihak kerajaan dalam menerangkan tentang GST kepada masyarakat agar kesan serta impak positif dari GST ini akan sampai kepada kepada semua peringkat masyarakat.

Friday, April 11, 2014

Kerajaan Tidak Lantik MYEG Kutip Cukai GST


April 10, 2014

KUALA LUMPUR – Kerajaan Persekutuan tidak melantik Syarikat MYEG Services Sdn. Bhd. (MYEG Services) untuk mengutip Cukai Barang Dan Perkhidmatan (GST) bagi pihak kerajaan.

Ketua Pengarah Kastam, Datuk Seri Khazali Ahmad berkata, syarikat itu cuma menjalankan Projek Customs Online Service Tax Reporting (COSTR) iaitu satu Kaedah Pemantauan Data Jualan (Invoice dan Resit Jualan) secara elektronik atas talian (on-line).

“Melalui sistem yang akan dibangunkan ini, data jualan dirakam secara elektronik dari mesin juruwang dan dihantar secara elektronik ke server Electronic Monitoring System (EMS) secara real time kepada pusat data kastam.

“Sistem ini terpakai kepada sektor perkhidmatan yang melibatkan operator restoran, bar, snek bar, rumah kopi luar hotel dan operator kelab malam, dewan tari, kabaret, pusat kesihatan, rumah urut, rumah awam kelas 1 serta rumah bir kelas 1,” katanya melalui satu kenyataan media hari ini.

Khazali berkata, berdasarkan terma dan syarat-syarat projek itu, MYEG Servies hanya dibayar sekiranya pihak syarikat dapat membuktikan bahawa penggunaan sistem yang dibangunkan menjana peningkatan hasil daripada sektor-sektor berkenaan melebihi 14 peratus daripada hasil yang dicatat pada tahun sebelumnya.
Menurutnya, syarikat itu tidak akan menerima apa-apa bayaran sekiranya peningkatan kutipan hasil adalah kurang daripada 14 peratus.

Beliau menerangkan, projek itu tidak melibatkan sebarang kos kepada kerajaan dan pelesen cukai perkhidmatan bagi sektor berkenaan dari segi pembangunan kerana kos terlibat ditanggung sepenuhnya oleh syarikat itu. – mynewshub.my

KPDNKK mahu pastikan orang ramai faham GST


2014/04/11 - 05:12:30 AM
Hasan (kiri) berbual dengan peniaga, Osnal Idris ketika melawat Gerai
Pejalan Kaki Jeti Lumut di Lumut, semalam. - Foto Muhaizan Yahya
Lumut: Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan (KPDNKK) akan memastikan orang ramai memahami dengan lebih jelas cukai barangan dan perkhidmatan (GST) sebelum ia dilaksanakan sepenuhnya pada April tahun depan. 

Menterinya, Datuk Seri Hasan Malek, berkata pihaknya juga meminta bantuan pihak berkuasa tempatan (PBT) untuk memberi kefahaman kepada orang ramai mengenai cukai berkenaan. 

“Ramai orang tidak tahu bila GST dilaksanakan, peniaga hanya membayar satu cukai saja pada kadar lebih rendah berbanding cukai jualan dan perkhidmatan (SST) yang perlu bayar cukai dua kali dengan kadar lebih tinggi. 

Tidak boleh naik sesuka hati 

“Apabila GST dilaksanakan, harga produk dan barangan juga tidak boleh dinaikkan sesuka hati,” katanya pada sidang media selepas melakukan tinjauan di Gerai Pejalan Kaki Jeti Lumut di sini semalam. 

Hasan juga meminta golongan peniaga supaya membuat persediaan termasuk melaksanakan program pengurangan kos sebelum GST dilaksanakan sepenuhnya nanti. 

Katanya, setakat ini Malaysia adalah antara dua negara terakhir dalam kalangan negara ASEAN yang masih belum melaksanakan GST.

MyEG tidak dilantik untuk kutip GST


10 April 2014
MyEG
PUTRAJAYA - Kerajaan tidak melantik syarikat MyEG Services Sdn Bhd untuk mengutip cukai barang dan perkhidmatan (GST) bagi pihak kerajaan, kata Ketua Pengarah Kastam Datuk Seri Khazali Ahmad.

Dalam kenyataan di sini hari ini Khazali berkata, MyEG Services telah diluluskan oleh Kementerian Kewangan untuk menjalankan projek Customs Online Service Tax Reporting (COSTR) iaitu kaedah pemantauan data jualan (invois/resit jualan) secara elektronik atas talian.

Melalui sistem yang akan dibangunkan itu, data jualan dirakam secara elektronik daripada mesin juruwang dan dihantar secara elektronik ke server sistem pemantauan elektronik (EMS) secara masa nyata kepada pusat data kastam.

"Sistem ini akan terpakai kepada sektor perkhidmatan yang melibatkan operator restoran, bar, snek bar, rumah kopi luar hotel dan operator kelab malam/ dewan tari/ kabaret/ pusat kesihatan/ rumah urut/ rumah awam/ rumah awam kelas 1 serta rumah bir kelas 1," katanya.

Penjelasan itu dibuat berikutan gesaan anggota Parlimen Pokok Sena Datuk Mahfuz Omar pada Selasa lepas yang mahu kerajaan mendedahkan perjanjian yang dibuat dengan MyEG Services untuk syarikat itu melaksanakan COSTR atau EMS.

Khazali berkata berdasarkan terma dan syarat projek itu, MyEG Services hanya akan dibayar sekiranya pihak syarikat dapat membuktikan bahawa penggunaan sistem yang dibangunkan berjaya menjana peningkatan hasil daripada sektor berkenaan melebihi 14 peratus daripada hasil yang dicatat pada tahun sebelumnya.

"Syarikat tidak akan menerima apa-apa bayaran sekiranya peningkatan kutipan hasil kurang daripada 14 peratus," katanya.

Beliau berkata projek itu juga tidak melibatkan apa-apa kos kepada kerajaan dan pelesen cukai perkhidmatan bagi sektor berkenaan dari segi pembangunannya kerana kos terlibat ditanggung sepenuhnya oleh pihak syarikat. - Bernama

KPDNKK pikul peranan perjelas GST kepada rakyat


10 April 2014
Menteri Perdagangan Dalam Negeri, Koperasi dan Kepenggunaaan Datuk
Seri Hasan Malek turut membuat tinjauan harga barang selepas merasmikan
Kedai Rakyat 1Malaysia di Seri Manjung di Seri Manjung hari ini. - Foto Bernama
LUMUT - Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan (KPDNKK) akan menyampaikan maklumat lebih terperinci dan tepat sehingga ke peringkat akar umbi mengenai Cukai Barangan dan Perkhidmatan (GST) yang diluluskan Dewan Rakyat pada Isnin lepas.

Menterinya Datuk Seri Hasan Malek berkata perkembangan terbaharu termasuk maklumat tambahan seperti senarai barangan yang tidak dikenakan GST akan turut disampaikan.

"Kita bersedia berdialog dengan golongan peniaga serta rakyat sebagai pengguna mengenai GST yang akan dilaksanakan mulai April 2015. KPDNKK perlu pastikan harga barangan tidak dinaikkan dan mereka perlu bersedia menerima hasil pelaksanaan (GST) yang baik itu," katanya kepada pemberita selepas melawat Pusat Penjaja di Jeti Lumut di sini hari ini.

Pelaksanaan GST yang lebih telus dan seragam ialah hanya pada kadar 6 peratus berbanding cukai jualan dan cukai perkhidmatan sebelum ini sebanyak 16 peratus.

Beliau berkata KPDNKK sentiasa bekerjasama dengan agensi serta kementerian lain seperti Jabatan Kastam dan Kementerian Kewangan dalam menyampaikan maklumat mengenai GST.

Rang Undang-undang GST diluluskan menerusi undi belah bahagi sebanyak dua kali, dengan undian kali pertama pembangkang memperoleh 81 undi berbanding pihak kerajaan 118 undi, manakala kali kedua, pembangkang kekal dengan 81 undi penyokong kerajaan memperoleh 119 undi.

Dalam perkembangan lain, Hasan berkata sebanyak RM1.08 juta diluluskan bagi Program Penjaja 1Malaysia (PP1M) tahun ini dengan enam lokasi yang didapati sesuai mulai Jun ini.

Beliau berkata enam lokasi itu ialah Pasar Tradisi di Inanam (Sabah), Top Spot Kuching (Sarawak), Medan Selama Majlis Daerah Kuala Pilah (Negeri Sembilan), Medan Selera berhampiran Jeti Kuala Besut (Terengganu), gerai pejalan kaki Jeti Lumut (Perak) dan Tamu Apin-Apin Keningau (Sabah).

"PP1M bertujuan untuk menyediakan landskap atau imej baharu kepada tempat makananan atau pusat penjaja supaya ia terus dapat menarik lebih ramai pelancong dan para pengunjung," katanya.

Sejak PP1M dilancarkan pada Oktober 2012, KPDNKK telah melaksanakannya di 19 pusat penjaja terpilih di seluruh negara dengan peruntukan sebanyak RM4.3 juta, katanya.

Terdahulu Hasan merasmikan Kedai Rakyat 1Malaysia di Pusat Perniagaan Manjung Point di Seri Manjung dekat sini yang beroperasi sejak dua tahun lepas. - Bernama

GST beneficial to public, Muslims told in Friday sermon


APRIL 11, 2014
The nation’s foremost religious authority defended the GST to
Muslims nationwide today in its official Friday sermon.— AFP pic
KUALA LUMPUR, April 11 — The nation’s foremost religious authority defended the Goods and Services Tax (GST) to Muslims nationwide today, saying in its official Friday sermon that the consumption tax is beneficial to the public.

The sermon also insisted that the tax is progressive, which means the poor will pay less than the rich, and will not burden the public as it is more effective, fair, efficient and transparent.

“Fellow Muslims, let us take a breath of wisdom, and find the real information,” said the sermon prepared by the Malaysian Islamic Development Department (Jakim) today.

“Believe it, that the implementation of GST is to strengthen the economy and to ensure the interests and well-being of the public.”

The sermon also insisted that the GST will result in more competitive pricing for goods, as it abolishes the previous sales and services tax.

In the sermon titled “Memperkasa Ekonomi Ummah” (Strengthening the economy of the community), Muslims were urged to pay any taxes that had been set by a ruler.

It said that the transfer of assets by the way of a ruler’s taxation system is allowed in the Islamic moral code.

After just two days of debate, the controversial GST Bill was passed in Dewan Rakyat, the lower house of parliament, with 119 votes for and 81 votes against on Monday.

The Bill also went through the committee stage reading with no amendments, ensuring that the consumption tax starts at a flat rate of six per cent beginning April 1 next year.

The tax is expected to help Prime Minister Datuk Seri Najib Razak’s administration rein in spending and tackle the government’s chronic budget deficit.

The GST is a consumption tax, meaning all Malaysians will be taxed according to their level of spending, regardless of income. This differs from income tax that is only applicable after a certain salary level is exceeded.

Putrajaya is expected to reap an extra RM22 billion from its implementation.

- See more at: http://www.themalaymailonline.com/malaysia/article/gst-beneficial-to-public-muslims-told-in-friday-sermon#sthash.ydS53UZT.dpuf

GST dan sektor kesihatan – Dr Afif Bahardin

APRIL 10, 2014

"Pelaksanaan GST adalah pada 2015 dan kementerian ini akan meneruskan perbincangan dengan Kementerian Kewangan untuk melihat keseluruhan spektrum perkhidmatan kesihatan bagi meminimumkan kesan GST terhadap kos penjagaan kesihatan" - Menteri Kesihatan, M Star Online, 7 November 2013

Inilah kenyataan Menteri Kesihatan pada November lepas apabila diminta mengulas mengenai kesan pelaksanaan Cukai Barang dan Perkhidmatan (GST) kepada perkhidmatan kesihatan di negara kita. Walhal tiga hari sebelum itu, beliau menafikan sebarang kesan akan menimpa perkhidmatan kesihatan negara kerana perkhidmatan ini dikecualikan daripada cukai GST 6%.

Menurut Laman Web Rasmi Jabatan Kastam Malaysia, GST adalah levi yang dicaj ke atas pembekalan barang dan perkhidmatan yang dibuat dalam menjalankan atau meneruskan perniagaan di Malaysia oleh orang kena cukai. GST juga dikenakan ke atas pengimportan barang dan perkhidmatan.

Kadar yang ditetapkan adalah pada 6%. 7 April 2014 yang lalu, ketika sesi Parlimen; Rang Undang-Undang Cukai Barangan dan Perkhidmatan (GST) diluluskan di Dewan Rakyat dengan 118 ahli Parlimen Barisan Nasional menyatakan persetujuan manakala 81 ahli Parlimen Pakatan Rakyat menyuarakan bantahan. Hakikatnya kini kerajaan akan tetap melaksanakan GST menjelang 2015.

Secara dasarnya GST adalah satu sistem percukaian yang telus, efisien untuk dilaksanakan bagi jangkamasa yang akan datang. Persoalannya, apakah Malaysia sudah bersedia? Falsafah perlaksanaan GST bukanlah untuk mencipta hasil baru atau meningkatkan pendapatan bagi negara tetapi adalah untuk memastikan satu sistem percukaian yang saksama dan menyeluruh.

GST juga menjadi satu rangsangan kepada rakyat untuk meningkatkan simpanan serta tidak boros dalam berbelanja.

Pendek kata, GST bertujuan untuk mengagihkan atau memperbanyakkan hasil cukai, bukannya menambahkan bebanan cukai. Di saat ini, kesesuaian waktu dan suasana ekonomi negara yang tidak diurustadbir dengan baik; maka adalah sukar untuk kita mewajarkan pelaksanaan GST.

Pembiayaan perkhidmatan kesihatan di Malaysia adalah satu isu besar dan menjadi kayu pengukur kepada pembangunan dan kesejahteraan sosial masyarakat Malaysia. Jawapan Menteri Kesihatan yang tidak meyakinkan pada tahun lepas mengenai GST tidak harus dibiarkan sepi.

Memang benar GST tidak dikenakan kepada pengguna (end consumer) apabila meilbatkan perkhidmatan kesihatan, tetapi hakikatnya, pembekal akan menggenakan cukai kepada semua syarikat perubatan, hospital, klinik, makmal perubatan dan juga farmasi.

Kepada para peniaga, apa jua bentuk cukai yang dikenakan akhirnya demi mengekalkan margin keuntungan, pastinya beban itu akan diletakkan pada pengguna. Ini juga sama bakal terjadi kepada pengguna atau pesakit yang memerlukan perkhidmatan kesihatan.

Contoh mudah, ubatan yang dijual kepada pesakit oleh hospital, tidak dikenakan GST. Namun GST akan dikenakan kepada hospital apabila mereka membeli bekalan ubatan daripada syarikat pembekal mahupun pembuatan ubat.

Kos untuk mendapatkan bahan mentah dan kos operasi untuk menghasilkan ubatan itu juga bakal terlibat dengan GST. Maka, harga akhir untuk ditawarkan kepada pengguna atau pesakit pastinya meningkat memandangkan tidak ada mana–mana peniaga atau pembekal akan rela untuk mengurangkan margin keuntungan produk jualan atau perkhidmatan mereka. Beban kos perkhidmatan kesihatan ini akhirnya ditanggung juga oleh rakyat.

Adalah dangkal apabila Menteri gagal untuk memahami bahawa GST tidak hanya bertindak di satu peringkat sahaja tetapi melibatkan beberapa lapisan perkhidmatan dan pembekalan. Ini adalah prinsip asas di dalam sektor pembekalan dan perkhidmatan.

Saat artikel ini ditulis, Menteri dan Kementerian Kesihatan masih gagal untuk menjawab beberapa persoalan penting apabila melibatkan GST dan perkhidmatan kesihatan dan kesannya kepada rakyat Malaysia.

Antara persoalan yang timbul adalah; apakah kerajaan akan menetapkan kadar yuran perkhidmatan kesihatan? Apakah yuran konsultasi doktor, paramedik, fisioterapi, rehabilitasi juga akan dikawal? Apakah produk kesihatan seperti ubatan atau alatan yang dijual di pasaran bebas atau kaunter farmasi akan dikawal harganya?

Ini adalah persoalan-persoalan yang wajib diambil kira oleh rakyat apabila mendepani GST. Tidak cukup sekadar mengangguk percaya dengan kenyataan Menteri bahawa rakyat tidak perlu risau.

Anggaran perbelanjaan kerajaan persekutuan untuk sektor kesihatan bagi tahun 2014 adalah mencecah RM22 bilion menurut Kementerian Kewangan. Perbelanjaan besar ini pastinya akan meningkat apabila dilihat kepada beban kos yang terpaksa ditanggung oleh kerajaan akibat pengenalan GST.

Apakah kerajaan Barisan Nasional (BN) sanggup menaikkan kadar perkhidmatan kesihatan awam? Apakah subsidi kesihatan akan dikurangkan demi menampung semula beban kos yang meningkat untuk mengurus sektor kesihatan? Akhirnya dalam usaha kerajaan untuk menambah pendapatan negara melalui GST, kerajaan sebenarnya terpaksa menanggung kos pengurusan yang lebih tinggi.

Disaat ketirisan, kebocoran, rasuah dan kegagalan kerajaan untuk melaksanakan sistem tender terbuka masih lagi menghantui pengurusan ekonomi negara, adalah tidak wajar dan tidak bertanggungjawab untuk kerajaan BN melaksanakan GST dan cuba untuk menampung kelompongan yang ada dengan membebankan rakyat.

Negara ini bahkan pernah dilabel sebagai negara teratas di dalam persepsi rasuah jika dirujuk kepada kajian Ernst & Young (E&Y) di dalam Asia-Pacific Fraud Survey Report Series 2013. Lebih 64% responden percaya untuk melakukan bisnes di Malaysia haruslah melibatkan rasuah dan lebih 71% percaya bahawa rasuah adalah kos tersembunyi yang tidak dapat dielakkan dalam melakukan bisnes di negara ini. Beginilah kritikalnya persepsi rasuah di negara kita.

Rakyat harus sedar, negara ini adalah negara yang kaya dengan hasil bumi dan sumber alam, jika ekonomi ditadbir dengan baik dan ketelusan, kecekapan dan akauntabiliti menjadi prinsip pentadbiran kerajaan, maka pastinya beban kehidupan rakyat akan dapat dikurangkan dan lebih banyak pembangunan infrastruktur dan kemudahan asas seperti perkhidmatan kesihatan dapat disediakan untuk rakyat.

Apa yang perlu untuk Malaysia sekarang bukanlah sistem percukaian GST; tetapi Malaysia perlukan kerajaan yang cekap, telus dan akauntabiliti. Kita percaya, jika ketirisan, rasuah dan kebocoran ini dapat diatasi dengan tatakelola kerajaan yang baik, cekap, telus dan akauntabiliti maka lebih daripada RM30 bilion dapat diselamatkan setiap tahun.

Tolak GST! Selamatkan Malaysia! – 10 April, 2014.

* Dr Afif Bahardin juga adalah ahli Majlis Mesyuarat Kerajaan Pulau Pinang merangkap Ahli Dewan Undangan Negeri Seberang Jaya

* Ini adalah pendapat peribadi penulis dan tidak semestinya mewakili pandangan The Malaysian Insider.

My EG Services not appointed to collect GST, says Customs chief – Bernama

APRIL 10, 2014

The government did not appoint MY EG Services to collect the goods and services tax (GST) on its behalf, Customs director-general Datuk Seri Khazali Ahmad said today.

He said the Finance Ministry had authorised My EG Services to carry out a project, an online method to monitor sales data (sale invoice/receipt) or Customs Online Service Tax Reporting (COSTR).

The explanation was made following calls by Pokok Sena MP Mahfoz Omar on Tuesday that the government reveal the agreement made with My EG Services or the company to implement COSTR or Electronic Monitoring System (EMS).

Via the system to be developed, Khazali said the sales data would be electronically recorded from the point of sales at the teller machine and sent electronically to the EMS server in real time to the Customs data centre.

"The system will be applicable to the service sector involving restaurant operators, bars, snack bars, coffee houses (outside of hotels and night club operators), dance halls/cabarets, health centres, massage parlours, public houses, public house class one and beer house class one," he said in a statement.

Khazali said, based on the terms and conditions of the project, My EG Services would only be paid if the company could prove the users of the system developed had succeeded in generating an increase in revenue from the sectors concerned exceeding 14% of the revenue recorded in the previous year.

"The company will not receive any payment if the increase in revenue collected is less than 14%," he clarified.

He said the project also did not involve any cost to the government and service tax licencees for the sectors for its development because the costs involved were fully borne by the company. – Bernama, April 10, 2014.

Navigating economic turbulence under the radar of Gen-Y – Syahir Sulaiman

APRIL 10, 2014

While our thoughts and prayers remain with the families on board flight MH370, our current state of economic affairs is distressing too.

On April 7, 2014, the GST bill was passed by Parliament, affecting Malaysians rich and poor, old and young, employed or unemployed, who will be paying the same regressive rate of 6% tax on their consumption of goods and services come April 1, 2015.

Pity the younger generation, as we will grow up in a high debt and high tax society.

By all means, excuses were given to justify the adoption of this last resort of revenue – we need to cut our deficits, 6% GST is lower than the existing 10% SST, 160 countries have implemented GST thus Malaysia must follow, etc.

This came after the inaction of Putrajaya over wastages, leakages and mismanagement as corroborated by the Auditor General Report, and the GST bill was coincidently approved after the tabling of a supplementary budget to ratify government’s overspending in 2013.

The audit report continues to reveal a series of endless possibilities of corruptions, wastages, leakages and mismanagement, except that it depicts different projects every year, albeit the need to strengthen fiscal prudence in Malaysia as the deficit gap and national debt level heading towards single direction, skyward.

So much efforts have been made by the auditors to highlight their audit findings and recommendations, yet the thick report will end up a dust collector.

Given these macro circumstances, the younger generation should anticipate several bleak economic turbulences in the near future. As these are not unprecedented, there's nothing better than being prepared.

First, always stick to your budget. Budget is a tool to plan the the "in and out" of your pocket. If you spend less than your income, you will have a surplus that leads into savings and investments. If vice versa, it’s a deficit that requires borrowings or just tighten your belt.

In reality, you will ride a cycle on which you will land on a balance, surplus and deficit budget. But if you continuously sit on deficit budgets, say over 18 years, you are heading into deep trouble. We need a fiscal discipline.

Second, save for the rainy days. There are two types of rainy days. Predictable rain is when you know it will fall.

When you just don’t know when or how bad it will be, it is the unpredictable rain. By saving each month, you won’t be blindsided when something happens. This applies to our family, and of course, our country too.

Needless to say, spending depends on affordability and rationality. Cut wastages and leakages. There is a saying, “Too many people spend money they haven't earned, to buy things they don't need, to impress people they don't like.” Do you need an Auditor General to prove otherwise?

Third, be honest with yourself. If you spend your own money for yourself, it is prudent. If you spend your own money for others, it is generosity.

If you spend someone else’s money for someone else’s interest, it is a trustee, and this is what the government is.

After all, the real engine of economic growth is the people. It all depends on our propensity to produce, to consume, to save, and to borrow. We have to live and consume within our means, thus to save wisely and to leverage only on productive and quality debt. It’s all about the choices we made, be it daily or five-yearly.

Malaysia is certainly at a crossroads. A fundamental change is required, not just on economic performance and social justice, but also in people’s mindset and delivery of public services that underpin our ability to develop the country. The journey will be long and arduous, but God willing, we will succeed. – April 10, 2014.

* Syahir Sulaiman is a member of the PAS Youth exco, and advocates Negara Berkebajikan.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.

Kami mahu GST dimansuh, bukan tangguh


APR 11, 2014 IRFAN ES

Saya pelik melihat rakan-rakan saya dan juga pejuang-pejuang Facebook agak segan membicarakan tentang GST yang baru saja diluluskan di Dewan Rakyat, yang disokong penuh oleh ahli-ahli parlimen BN pada 7 April lepas.

GST adalah sesuatu yang tidak diperlukan oleh negara ini. Ia menaikkan harga segala barangan di sekeliling kita dari yang sekecil-kecil hingga yang sebesar-besarnya. Ia mengakibatkan yang miskin menjadi lebih miskin.

Ia menyebabkan seorang ibu terpaksa bekerja membantu menyara keluarga meninggalkan anak-anak di rumah pengasuh. Ia menyebabkan seorang bapa terpaksa bekerja lebih masa untuk menambah pendapatan lalu meninggalkan ruang yang amat sedikit untuk bersama dan mendidik anak-anak. Lalu anak-anak tidak diasuh dengan sempurna, lalu terpengaruh dengan perkara yang tidak baik, lalu makin bertambahlah masalah sosial di negara ini. Anda katakan keharmonian negara bermula dari rumah tangga yang sempurna, jadi bagaimana?

GST menyebabkan rakyat tertekan dengan kos sara hidup yang tinggi. Tekanan tidak baik untuk kesihatan. Tekanan perasaan menyebabkan manusia hilang kawalan. Jenayah akan menjadi-jadi. 

Tekanan perasaan menyebabkan manusia lebih jauh dari Tuhan. Anda pernah dengar cerita-cerita di Facebook tentang umat Islam yang terpaksa murtad untuk mendapatkan bantuan kewangan disebabkan kefakiran hidup? Pernahkah anda mendengar hadis bahawa hampir-hampir kefakiran itu membawa kepada kekufuran? Dan anda masih mengatakan anda seorang pejuang akidah?

Anda mahu mengambil contoh negara-negara maju yang tiada masalah melaksanakan GST. Biar saya ceritakan keadaan di negara-negara Barat. Mereka laksanakan GST, tetapi tidak mencukai tinggi harga keretanya. Mereka laksanakan GST, tetapi pendidikan percuma, tidak perlu pinjam PTPTN untuk sambung belajar di universiti kerana semuanya ada biasiswa. Mereka ada gaji minimum berasaskan jam, bukan bulan. Mereka ada bantuan sosial untuk anak-anak yatim, ibu tunggal dan orang yang baru kehilangan kerja. Lebuh raya mereka mengenakan tol yang amat minimum. Harga minyak petrol mereka lebih rendah dengan nilai mata wang mereka yang tinggi.

Mengapa kita tidak mahu ikut contoh sebegini? Mengapa kita suka ambil separuh dan meninggalkan separuh lagi? Sudah terbiasa dengan cara kita ambil sebahagian ajaran al-Qur’an dan meninggalkan sebahagian yang lain?

Maka rakan-rakan dan para pejuang Facebook. Marilah kita turut bawa jihad dari Syria itu lebih dekat dengan rumah, ke Rohingya lalu ke negara kita sendiri. GST ialah undang-undang zalim. Ketirisan dan pembaziran oleh kerajaan tidak mahu dibasmi, tetapi cukai mahu ditambah. 

Imam Nawawi pernah diminta oleh khalifah untuk mengeluarkan fatwa membenarkan kerajaan mencukai lebih rakyat untuk membiayai peperangan mempertahankan negara. Beliau menolak malah menegur khalifah supaya menghentikan kemewahan perbelanjaan kerajaan terlebih dahulu. Darurat apakah pula yang sedang kita hadapi sekarang?

Justeru marilah kita sama-sama berbuat gegak-gempita di seluruh negara, di Facebook, di blog, di kedai kopi, di tempat kerja, di taman atau di mana sahaja menceritakan bahaya GST. Sebarkan berita tentang kezalimannya. Ini adalah untuk kebaikan masa depan anda. Nanti jika ia telah dilaksanakan, anda dan orang-orang yang anda sayangi juga yang susah. Jangan sampai sudah terlajak perahu tidak mampu diundur lagi.

Kita bukan mahu GST ditangguh atau dikaji semula. Kita mahu GST dimansuhkan serta-merta.

KPDNKK Takes On Role Of Creating Public Awareness On GST


LUMUT, April 10 (Bernama) -- The Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) has been tasked with creating awareness among the public right down to the grassroots, on the Goods and Services Tax (GST) which was passed by Parliament on Monday.

Its minister, Datuk Seri Hasan Malek said the exercise would now include providing additional information such as the list of goods not affected by GST.

"We are prepared to hold dialogue sessions with traders and consumers on GST which will be implemented in April 2015.

"The ministry needs to ensure the price of goods will not be raised and the people should be prepared to accept GST which is a better taxation approach," he told reporters after visiting the Hawker Centre at the Lumut Jetty Thursday.

He said KPDNKK was working with other agencies and ministries such as the Customs Department and Finance Ministry to disseminate information on GST.

On Monday, the Dewan Rakyat passed the GST Bill through bloc voting.

On another development, Hasan said RM1.08 million had been approved under the 1Malaysia Hawkers Programme (PP1M) this year at six locations starting in June.

The six locations are the Traditional Market in Inanam (Sabah), Top Spot Kuching (Sarawak), Medan Selama Majlis Daerah Kuala Pilah (Negeri Sembilan), Food Court near Kuala Besut Jetty (Terengganu), Hawker Centre at Lumut Jetty (Perak) and Tamu Apin-Apin in Keningau (Sabah).

"PP1M is aimed at providing a new landscape and image for food courts and hawker centres to attract more tourists and visitors," said Hasan.

Since the launch of PP1M in October 2012, KPDNKK had built 19 hawker centres at selected spots nationwide with an allocation of RM4.3 million, he added.

Earlier, Hasan officially opened the 1Malaysia People's Store in Seri Manjung, near here, which began operation two years ago.

-- BERNAMA

MyEG slips on GST collection news


Published: Friday April 11, 2014 MYT 10:04:00 AM 
Updated: Friday April 11, 2014 MYT 10:06:39 AM

KUALA LUMPUR: Shares of My E.G. Services (MyEG) fell to a low of RM2.65 early Friday on a report the government did not elect MyEG to collect the Goods and Service Tax (GST) on its behalf.

At 9.51am, it was down 6.59 points to 1,852.93. There were 1.51 million shares traded at prices ranging from RM2.65 to RM2.74.

The FBM KLCI fell 6.59 points to 1,852.93. Turnover was 568.80 million shares valued at RM267.59mil. Losers beat gainers more than three to one with 398 decliners to 123 advancers and 222 counters unchanged.

A news report, quoting the Customs director general Datuk Seri Khazali Ahamd as saying the government did not elect MyEG to collect the GST on behalf of the government.

Thursday, April 10, 2014

Sim: Demand to determine property prices more than GST

Published: Thursday April 10, 2014 MYT 12:00:00 AM 
Updated: Thursday April 10, 2014 MYT 2:58:55 PM
Sim in the association’s premises in Kuching yesterday.
— ZULAZHAR SHEBLEE / The Star
KUCHING: Public demand will determine property prices more than the Goods and Services Tax (GST), which is due for implementation a year from now.

“The market sentiment now is quite mixed. It is in transition,” said Sarawak Housing and Real Estate Developers Association (Sheda) secretary-general Sim Kian Chiok. “As such, demand will continue to play a greater role in determining prices.”

GST will be introduced next April at 6%. All property transactions except residential will be included in the new tax.

“Commercial properties should go up in price (after GST), but some say the market is ‘overheating’, so future prices might not necessarily move in the direction of GST. Prices still come down to location and demand.”

Sim said even with more expensive construction costs, price appreciation rates “might stay even” if demand dropped due to the GST’s impact on purchasing power.

He declined to comment on whether Sheda was expecting a rise or drop in property supply in the coming years, given newly imposed state regulations and higher building costs.

“Our supply in Sarawak is generally quite consistent over the years. Annual about 12,000 new stock is added. There is always also tie over (old stock) from previous years.”

He added that the number of new affordable housing that would come on the market would depend on the Government’s policies and the availability of land the new basic infrastructure.

On a related matter, he reiterated that property developers did not make 80% to 100% profit, as alleged by Housing Minister Datuk Amar Abang Johari Tun Openg recently.

In a statement, Sheda said profits by public listed companies, which are the largest developers, did not show such margins.

“The big developers set trends for the entire industry. Definitely margins are not as alleged. People can refer to public listed companies’ accounts to see whether such exorbitant profits are made or not.”

Johari caused a stir last month when he was quoted as saying certain developers made as much as 100% profits from property sales. Johari claimed irresponsible developers were inflating prices.

Sim was speaking to reporters promoting the upcoming Sheda Home and Property Roadshow, which will kick off April 18 at Boulevard Shopping Mall here.

The event, organised by Absolute Cool Event, will include over 60 exhibitors, spread out over the new and old wings of the mall.

Attractions include colouring contests, cooking demonstration and classes, a blood donation drive and feng shui talk.

It will end on April 20. Sheda will hold similar events in Sibu, Bintulu and Miri at later dates.

'Home ownership a dream when GST in effect'

Published on: Wednesday, April 09, 2014 

Kota Kinabalu: Youths generally in the country or Sabah, in particular, can forget about owning a house by 2015 if the Goods and Services Tax (GST) is implemented.

National DAP Publicity Secretary, Junz Wong, said it was disappointing that BN has once again overlooked the difficulties that the rakyat (people), especially the younger generations, are facing.

To this, he said the Federal Government should consider the younger generations before implementing the GST.

"If the GST were to be imposed on houses, lands and cars, the young generations then could forget about owning a decent house after April 2015," he said in a statement, Tuesday.

He foresees that once the impending GST on prices of houses is implemented, the following chain reaction would occur, namely raw materials procured from importers, port and forwarding services will be taxed while suppliers selling the processed materials to developers will also be taxed.

"Transportation costs to deliver these materials will also be taxed as well as developers buying lands (for development projects).

"The developers will use all the (already taxed) materials to build houses on the (taxed) land and that houses sold will be taxed again," he said.

At the end of the day, he said, all the related players will be earning less profits due to the newly implemented GST and, thus, all burdens will be passed down to the end users who are the house buyers.

And these house buyers are struggling Malaysian citizens who are finding it very hard to own houses even today, Wong said.

"Not to mention other burdens that the citizens will have to pay such as telephones bills, electricity bills, Internet bills and normal household items, among others.

"So, how can the younger generations afford to own a house by 2015?" he asked.

Further on the GST, he said Sabahans would be further discriminated by the GST.

Wong, who is also DAP Sabah Organising Secretary, said Sabahans in fact would be the most badly affected.

"Sabah is arguably the poorest state with low income but has an extremely high cost of living and overpriced houses" he said.

To this, he asked if Sabahans would be paying more tax than other Malaysians outside Sabah if the GST is implemented.

The price of goods in Sabah in general are more expensive than in the peninsula, he said.

GST: Strengthen enforcement capability


April 10, 2014
FMT LETTER: From Sukhdave Singh, via e-mail

While the Perak Consumer Movement (PCM) is supportive of the GST, it cannot be denied that the average consumer is worried if it would have an adverse impact on their livelihood.

With subsidy rationalisation and the recent increase in fuel and electricity prices, consumers are now left even more worried if GST will be further impact their livelihoods.

PCM believes that GST will bring about a reduction in the prices of goods and services as businesses pass on the benefits of reduced tax incidence to consumers by slashing the prices of goods.

But what if businesses take advantage by increasing prices of goods and services squarely blaming the GST? Is the government enforcement machinery ready to act against profiteers?

PCM calls on the government to ensure that all enforcement capability, equipped with relevant laws are ready to be fully deployed to deal swiftly against profiteers.

There is also a pressing need for more strategic and transparent communication from the government to the public and businesses to create awareness on GST.

Civil Society groups must be roped in to ensure the message is communicated correctly and professionally.

Consumer Associations should be encouraged to set up complaint units within their respective areas to support the government by channelling grievances to the correct enforcement agencies for action.

As the implementation of GST is a paradigm shift in the way tax is collected in Malaysia, consumers especially low income earners should not be left in a lurch for want of action by authorities.

We have seen over the years how traders have profiteered on a handful of price control items announced by government during festivities.

The writer is secretary, Perak Consumer Movement

Add more items in the zero-rated list, gov’t told



FMT Staff | April 9, 2014

This will help ensure that the goods and services tax is a more progressive tax, says MCA's Chua Tee Yong.

PETALING JAYA: MCA vice president Chua Tee Yong has called for the government to add items in the zero-rated list to ease the burden of the low and middle income group.

“With this, it will help to ensure the goods and services tax (GST) is a more progressive tax,” he said in a press statement, today.

Chua said that during a GST briefing at the MCA headquarters and a meeting with the GST implementation unit, MCA had urged the government to continuously evaluate items to be included in the zero-rated list.

“We have raised a proposal to increase the electricity exemption to the first 300 kWh to ensure more residential users are exempted.

“On April 7, 2014, the government confirmed that the threshold is increased hence providing relief to 4.56 million consumers in the peninsular and 260,000 consumers in Sabah and Labuan,” he said.

During the announcement of Budget 2014, one of the exempt items was domestic electricity for the first 200 kWh hence exempting 50% of residential users.

The Labis MP added that a shopper’s guide will come in handy during the early stage of the GST implementation so that consumers will understand which items are zero rated.

“This will also enable consumers to play a role in monitoring prices to help reduce profiteering by dishonest sellers,” he said.

Chua also pointed out, that with the implementation of the GST, the rakyat will have higher expectations on government spending since they are more aware that they contribute directly to the government revenue.

“Hence, it is important that measures are implemented to curb wastage and leakages and the government must take stern action against those who are responsible as highlighted in the Auditor-General’s report.”

Parliament passed the GST Bill 2014 on April 7 after MPs spent two days debating the controversial tax in the House.

The GST will be effective come April 1, 2015.

GST: Rakyat jadi mangsa tabiat boros Menteri Kewangan


APR 09, 2014 NAZRI ABDULLAH

KUALA LUMPUR: Selagi tiada perubahan pada sikap menteri kewangan, selagi itu rakyat di negara ini bakal dibebankan dengan pelbagai bayaran termasuk yang terbaru Cukai Barangan dan Perkhidmatan (GST) yang diluluskan Dewan Rakyat kelmarin.

Pengarah Pusat Penyelidikan PAS, Dr Dzulkefly Ahmad (gambar) berkata, memang benar GST bakal menjana pendapatan besar kepada negara namun selagi masalah sikap tidak diubah, tiada guna cukai baru diperkenal melainkan hanya menyusahkan rakyat.

"Apa tabiatnya? Berbelanja besar masa mewah dan masa meleset, mudah buat bajet tambahan, beri kepada kroni secara direct-nego, masih kekal monopoli dan konsesi-konsesi, ketirisan dan rasuah masih di takuk lama.

"Ini Ketua Audit Negara yang laporkan setiap tahun berlaku perkara sama," kata beliau kepada Harakahdaily.

Kelmarin, Dewan Rakyat meluluskan Rang Undang-undang GST selepas melalui dua hari perbahasan untuk bacaan kali kedua.

Pengundian belah bahagi menyaksikan 118 ahli parlimen BN menyokong sementara 81 ahli parlimen Pakatan Rakyat menyatakan tidak bersetuju.

GST yang dijadual dilaksanakan pada April tahun hadapan dijangka bakal memberi tambahan pendapatan negara sebayak RM3 bilion untuk tahun pertama dan unjuran sehingga RM20 bilion pada keadaan optimanya.

Mengulas lanjut, Dzulkefly yang juga Ahli Jawatankuasa PAS Pusat berkata, kerajaan tidak wajar menyalahkan pemberian subsidi sebagai punca kebejatan kewangan negara sehingga menghalalkan perlaksanaan GST.

Hutang kerajaan Pusat katanya bukanlah disebabkan oleh faktor subsidi sahaja, dan jika sekalipun benar, ianya hanya sedikit.

Tetapi kata beliau, punca lebih besar adalah cara pengurusan kewangan negara yang tidak berhemat.

Beliau turut meminta Menteri Kewangan Datuk Seri Najib Razak menjelaskan punca kerajaan BN menanggung defisit fiskal terus menerus selama 16 tahun dan hutang Kerajaan Persekutuan yang telah mencecah hampir 55% dari KDNK walaupun tidak diizinkan Akta Pinjaman Tempatan 1959.

"Negara memerlukan seorang Menteri Kewangan yang tinggi hemahnya, beramanah-integriti, sepenuh-masa, cermat, tekun, akumen kewangan yg tajam, tak diganggu-gugat oleh kepentingan kroni.

"GST boleh jana pendapatan yang mewah berbilion ringgit, tapi yang mesti berubah menteri kewangan dan tabiatnya," katanya.

Selepas GST lulus, Pakatan ikrar tiada kompromi dengan ketirisan, kata pemimpin PAS

OLEH DIYANA IBRAHIM
APRIL 10, 2014
Lulusnya Rang Undang-Undang Cukai Barangan dan Perkhidmatan (GST)
di Dewan Rakyat Isnin lalu, Pakatan Rakyat (PR) kini berikrar tidak akan
berkrompomi soal ketirisan yang dilakukan kerajaan, kata Ahli
Jawatankuasa Kerja PAS Pusat, Dr Dzulkefly Ahmad (gambar).

Beliau berkata, kerajaan perlu memastikan pelaksanaan sistem GST tidak berdepan ketirisan memandangkan melalui hasil cukai itu pendapatan negara akan lebih meluas.

Katanya, kegagalan kerajaan menguruskan hasil wang rakyat sehingga menyaksikan tahun demi tahun berlakunya pembaziran yang didedahkan Laporan Audit Negara, maka GST dilihat sebagai jalan singkat.

"Ini memang tidak dapat dinafikan lagi kerana Perdana Menteri Datuk Seri Najib Razak sendiri pernah menyatakan walaupun tidak secara terus bahawa dengan pelaksanaan GST dapat menyelamatkan Malaysia daripada muflis," katanya kepada The Malaysian Insider.

Tambahnya, rakyat juga kini mempunyai hak dan suara yang besar untuk hidup di negara yang bebas korupsi memandangkan setiap hasil kutipan GST datangnya daripada mereka.

"Rang undang-undang GST sudah diluluskan ia sudah menjadi perkara lepas dan kini kebimbangan besar kita adalah dengan pelaksanaan sistem cukai yang akan menyaksikan rakyat kelas pertengahan paling terjejas.

"Ini juga bermakna tidak ada perbezaan sama ada anda anak seorang miskin atau hartawan Syed Mokhtar sekalipun, perlu membayar harga yang sama tidak kira berapa umur anda, gaji atau siapa anda," katanya.

Bekas ahli Parlimen Kuala Selangor itu juga menggesa Najib memberi jaminan selepas pelaksanaan GST bermaksud tidak ada lagi skandal seperti penyelewengan Pusat Fidlot Nasional (NFC), Zon Bebas Pelabuhan Klang, (PKFZ ) di mana setiap projek mestilah dilakukan dengan tender terbuka dan tidak bergantung semata-mata daripada sektor minyak dan gas.

"Persoalannya, dapatkah Najib memastikan setiap pengaliran kewangan GST dalam melalui setiap rangkaian pengeluaran dapat dilakukan dengan lebih bertanggungjawab dan telus?

"Kita perlu ingat GST merupakan sistem di mana setiap peringkat akan dikenakan cukai. Adakah benar tidak akan berlaku kenaikan harga?" katanya.

Dakwanya lagi, Najib merupakan satu-satunya perdana menteri di Malaysia yang menyaksikan berlakunya peningkatan defisit negara tidak terkawal iaitu perbelanjaan melebihi pendapatan selama dua penggal pentadbirannya.

Sebelum ini, Menteri di Jabatan Perdana Menteri Datuk Seri Idris Jala berkata, hasil kutipan cukai GST Malaysia akan dapat menambah pendapatan sehingga RM27 bilion.

Katanya kerajaan juga memahami mengenai kebajikan rakyat apabila bertindak menurunkan cukai korporat dan juga peribadi selain memberi rebat kepada peniaga berdaftar serta menagihkan Bantuan Rakyat 1 Malaysia (BR1M).

Mengulas mengenai hal itu, beliau mengkritik tindakan kerajaan menurunkan cukai korporat dan peribadi kerana ia langsung tidak memberi manfaat kepada rakyat.

"Apakah faedah dan tujuan menurunkan cukai tersebut kerana mengikut peratusan sebanyak 85% rakyat di negara ini tidak dikenakan membayar cukai pendapatan.

"Ini bermaksud betapa ramainya rakyat Malaysia yang mempunyai pendapatan tidak melepasi RM3,000. Jadi untuk siapakah penurunan dua cukai tersebut yang tentu bukan dirasai bagi berpendapatan sederhana," katanya.

Beliau turut membandingkan pelaksanaan cukai GST di China apabila berlakunya ketirisan dalam sistem mereka.

"Saya mengkaji sistem GST mereka. Wujudnya kebocoran penyelewengan namun mereka masih memperoleh hasil pendapatan kerana bilangan rakyatnya yang ramai," katanya.

Bagaimanapun, beliau mengakui Pakatan tidak pernah menyatakan bahawa sistem GST tidak bagus untuk dilaksanakan.

"Kita tidak kata sistem cukai itu tidak bagus namun bukan pada masa sekarang, ketika gaji rakyat negara ini masih lagi rendah," katanya.

Selain itu, beliau juga berkata Pakatan akan akan terus mendesak kerajaan mengagihkan BR1M kepada rakyat sebanyak RM1,200 secepat mungkin sepertimana dijanjikan Najib semasa Pilihan raya Umum ke-13 (PRU 13) lalu.

Antara lain katanya timbul kerisauan pada kelulusan Rang Undang-undang GST di Parlimen tidak menyatakan tempoh tarif itu kekal.

"Memang benar mereka kata hanya 6% namun sehingga bila? Kita risau tidak sampai dalam tempoh 5 tahun kerajaan akan naikkan cukai tersebut," katanya.

Justeru, beliau menyeru semua rakyat bersama menyertai himpunan protes peningkatan kos sara hidup pada 1 Mei ini.

Rang Undang-Undang GST diluluskan di Dewan Rakyat selepas ia dibacakan kali ketiga dengan 118 ahli Parlimen menyatakan persetujuan pada kali pertama manakala hanya 81 ahli Parlimen yang menyuarakan bantahan.

Bacaan kali kedua pula menyaksikan 119 ahli Parlimen bersetuju dan 81 yang lain tidak bersetuju dan ia membawa kepada bacaan kali ketiga apabila Yang Dipertua Dewan Tan Sri Pandikar Amin Mulia meminta persetujuan ahli Parlimen.

Proses pengundian menyaksikan ahli Parlimen pembangkang membawa sepanduk membantah GST dan menimbulkan sedikit kekecohan di dewan.

Najib semasa mengumumkan Bajet 2014 bahawa GST akan dilaksanakan pada April 2015 dengan pengenalan cas sebanyak 6% menggantikan Cukai Jualan dan Perkhidmatan. – 10 April, 2014.

Advertising or propaganda? A reply to Ahmad Maslan – Medecci Lineil

APRIL 09, 2014

I would like to refer to The Malaysian Insider article “RM17 million allocated for GST info campaigns, says deputy minister” on March 19, 2014.

Is the RM17 million for GST advertising or propaganda? Because that is an enormous amount of money to spend to force people paying the tax. The evil of taxes like GST confirmed my suspicions that politicians truly despise the people they purport to represent.

If you think carefully about the GST advertising or any kind of government advertising across the country, you can only see one purpose that conformed to which the government and politician insist the private businesses must obey. If you don’t comply – you go out of business; you are humiliated, demoralised or even penalised.

No market feedback mechanism is in operation and yet in GST context a “NO” answer is not an option. Why? You cannot test or reject it, not a chance. Unlike market advertising, you can test Clear shampoo for a while and you determine whether you want to continue to buy it or not.

The government has a very loud voice and big mouth whenever it wants to announce and gamble with other people’s big money for their political projects while 1.4 million government bureaucrats, each one is a propagandist for his government. At the end of the day, the advertising is paid by means of taxes extracted from the people mercilessly.

Other than that, I never have seen government advertising that is decent and clever. Instead, they are full of deceit, with stupid-sounding government policies and nasty put downs of political opponents.

Many commercial advertising like Clear shampoo, Dettol, KFC, Pizza Hut can be funny, beautiful, clever and even informative. But, you never have seen if Clear shampoo with Cristiano Ronaldo as a model ran an advertisement claiming that Rejoice shampoo was processed with rat poison. Consumers don’t like it either.

Because the whole idea of business is to present positive images of their products, and to please customers. To be in a good mood when we buy their things. The businesses wish for us to be even happier after we have made the purchase and have used those products. The advertisement is paid by investors and depends on the voluntary acceptance of the product by the consumers. In short, they are very productive to our economy. – April 9, 2014.

*Medecci Lineil is an Austrian Libertarian who lives in Kampung Tematu, Kuching, Sarawak, and also a founding board member at Institute for Leadership and Development Studies.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.

GST lulus: Apakah Najib akan ubah tatakelola kewangannya?

APRIL 09, 2014

Dr Dzulkefly Ahmad is a member of the PAS central working committee and ex-MP of Kuala Selangor.

Akhirnya Rang Undang-Undang Cukai Barangan dan Perkhidmatan (CBP-GST) diluluskan di Dewan Rakyat selepas dua kali percubaan sejak 2005 dan 2009.

Untuk ingatan umum, hujah utama pihak kerajaan persekutuan melaksanakan GST adalah bagi mengatasi kedudukan kewangan negara yang getir.

Perdana Menteri Najib Razak seperti DS Idris Jala juga, pernah menakut-nakutkan rakyat dengan risiko negara akan bankrap andainya tidak ditangani isu hutang dan defisit fiskal.

Pokoknya, Cukai Barangan dan Perkhidmatan (CBP atau GST) disarankan sebagai penyelesaian kemestian paling baik mengatasi masalah kewangan negara.

Benar bahawa GST bakal menjana pendapatan negara yang mewah. Antaranya kerana ‘Cukai Kepenggunaan’ ini adalah cukai 'pelbagai peringkat’ dalam rantaian kebakalan barangan.

Cukai ini juga dikenakan dengan tidak membezakan pendapatan (kaya atau miskin) serta umurnya (bayi atau orang tua).

Juga kerana lebih banyak barangan dan perkhidmatan dikenakan berbanding cukai lama SST.

Unjuran pendapatan adalah lebih RM20 bilion pada operasi optimanya.

Penulis mahu membedah hujah simplistik pihak kerajaan dengan lebih mendalam.

Sesungguhnya, hujah kerajaan nyata tempang dan meleset.

Diagnosis masalahnya tersasar dan preskripsi rawatannya kini bakal meninggalkan risiko yang parah mungkin maut kepada pesakit (rakyat).

Pertamanya, apakah sebabnya kerajaan BN menanggung defisit fiskal berterusan selama 16 tahun?

Mengapakah hutang kerajaan Persekutuan mencecah hampir 55% daripada KDNK yang tidak diizinkan oleh Akta Pinjaman Tempatan 1959?

Kedua-dua soalan ini mesti dijawab oleh Menteri Kewangan Najib Tun Razak secara tuntas dan penuh sedar.

Mengapakah Najib meletakkan ‘subsidi’ sebagai punca kebejatan kewangan negara? Dan mengapa penghapusan subsidi sebagai ‘preskripsi rawatan’?

Hutang kerajaan pusat bukanlah disebabkan oleh faktor ‘subsidi’ sahaja, bahkan sedikit kalau pun benar sumbangan subsidi.

Memangsakan ‘subsidi’ sebagai punca kebejatan hutang dan defisit fiskal adalah tidak tepat dan dangkal di segi analisis.

Tidak sukar dan rumit untuk memahami bahawa dalam ‘Persamaan Belanjawan’ atau ‘Budget Equation’ yang seimbang, semua ahli ekonomi tahu bahawa pendapatan = perbelanjaan.

Pendapatan kerajaan dijana melalui pelbagai cukai langsung (contoh pendapatan, korporat) dan tidak langsung (contoh eksais, cukai jualan), hasil bukan cukai (contoh sewaan, denda-hukuman) dan terimaan bukan hasil (contoh bayaran tidak dituntut).

Sementara itu ‘perbelanjaan’ terdiri daripada ‘perbelanjaan operasi’ dan ‘perbelanjaan pembangunan’ serta bayaran subsidi.

Maka jelasnya, tidak benar meletakkan semua kesalahan kepada ‘subsidi’.

Perbelanjaan yang tidak pruden, berbelanja besar semasa kedua-dua zaman mewah dan meleset, ‘tanpa kekangan’ adalah punca utama defisit dan hutang kerajaan pusat.

Daripada segi prinsip ekonomi klasikal dan juga daripada segi anjuran Al-Quran perbelanjaan Najib tidak pruden.

Berbelanja secara ‘mengepam ekonomi’ (‘pump-priming atau ‘counter-cyclical) hanya digunakan pada zaman meleset.

Ini kaedah yang dianjur oleh teori 'Keynesian’ seorang pakar ekonomi Barat yang kebetulan sama mengesahkan Al-Quran yang dianjurkan kepada Nabi Allah Yusuf (AS) ketika dilantik mentadbir ekonomi kerajaan Mesir.

Di samping itu berbelanja dengan tatakelola yang ‘tidak mengikut awlawiyyat (keutamaan), boros dan sarat dengan ketirisan dan kebocoran serta amalan kronisme adalah juga sebab utama kebejatan kewangan.

Menyelamat (bailout) syarikat kroni dan kerajaan (GLCs) menelan berbilion ringgit. Begitu juga ‘cost-overrun’ dan harga kontrak yang membelon (bloated) kerana cara runding-langsung.

Inilah yang menyebabkan kerajaan Najib-UBN meminjam dan berhutang besar!

Malangnya pentadbiran Najib terus memangsakan ‘subsidi’.

Program ‘rasionalisasi subsidi’ tanpa menghitung kesan langsung dan kesan berantai kepada rakyat khasnya golongan berpendapatan rendah-sederhana.

Tidak pula subsidi kepada Penjana Tenaga Bebas (IPP) dan pelbagai geran, ‘tax-break’ dan pengecualian cukai kepada syarikat besar termasuk utiliti (air, lebuhraya) disebut-sebut.

Ini yang dimaksukan oleh Tengku Razaleigh mantan Menteri Kewangan sebagai dosa-dosa kerajaan BN.

Najib diingatkan bahawa ‘subsidi’ wujud dalam ekonomi (welfare economy) dengan istilah ‘transfer payment’ dan dilakukan bagi mencapai matlamat ‘pengagihan semula sumber dalam sesebuah sistem pasaran atau ‘redistribution of income in a market system’ .

Kesimpulan tulisan ini bertujuan untuk mengingatkan Najib dan kerajaan UBN supaya segera melakukan reformasi dan penambahbaikan dalam tatakelola kewangan Negara.

Dalam pentadbiran Najiblah hutang berganda dua kali dan kini mencecah RM543.6 bilion.

Setiap tahun mengemukakan dua kali anggaran perbelanjaan tambahan purata RM20 bilion setahun. 75% adalah untuk kos mengurus. 

Tahun hadapan unjuran inflasi oleh pakar-pakar ekonomi akan melepasi 4%. Kini CPI mencecah 3.4% dan akan berakhir setinggi 3.8% pada hujung tahun ini.

Rakyat akan terus terbeban. Barang dan kos saraan hidup akan terus meningkat.

Wahai PM Najib, meskipun berbilion RM akan dipungut dalam sistem cukai baru GST, yang menggantikan cukai lama SST, namun apa yang jelas rakyat akan dimangsakan sekali lagi.

Sementara itu sah bagai dek kata….cukai baru ini akan mencekik serta menghempit dan menhenyak rakyat sehingga… di Gasak Sampai Tertunggeng (GST)!

Maka kami akan berhimpun pada 1 Mei di Dataran Merdeka bagi menyatakan penentangan kami terhadap GST, TPPA dan BN..Barang Naik! – 9 April, 2014.

* Ini adalah pendapat peribadi penulis dan tidak semestinya mewakili pandangan The Malaysian Insider.

Passing of GST: Sparing the rod and spoiling the BN Government — William Leong


APRIL 9, 2014

APRIL 9 — On April 7, 2014 with time enough for only 10 MPs on each side to debate, the Goods and Services Tax Bill 2014 was pushed through by a vote of 118 to 81.

Malaysians, rich, middle class and poor will from April 1, 2015 pay the same rate of 6 per cent add-on tax on their consumption of goods and services.

Straw man arguments

The Government relying on their 133-majority offered 2 unconvincing arguments for adopting GST. The first argument is GST will not hurt the people because it replaces the Sales and Services Tax (“SST”) which has higher rates of 10 per cent and 6 per cent respectively. It is a straw man argument. Malaysians will soon painfully discover that this argument is a fallacy.

GST is a far more burdensome tax than SST. Unlike SST which is a tax paid at the level of the final production or supply of the service, GST is payable at every level of the supply chain and finally borne by the consumer.

GST also applies to many more goods and services than SST.

The second argument is that 160 countries have adopted GST and therefore GST must be good. This is a jumping on the bandwagon kind of argument appealing to those with a herd mentality. Those who follow this argument will like the lemmings when they fall off the cliff find out, too late, that the rest of the countries who did not adopt GST or abolished it were right.

Now that parliament has passed GST, I wish to point out three reasons Malaysians should press for GST’s abolition.

Five countries have abolished GST: Vietnam (in the 1970s), Grenada (introduced 1986, dismantled shortly thereafter), Ghana (introduced March 1995, removed two months later), Malta (introduced 1995, removed 1997) and Belize (introduced 1996, removed 1999). [Three of these countries have since reintroduced the tax; Ghana in 1998, Malta and Vietnam in 1999].

The first reason: GST does not solve the real deficit problem but will make it worse

There is an old saying “spare the rod and spoil the child”. We know it does not apply in Sweden and I offer my sympathies to the Malaysian couple, Shawal Norshal and Azizul Raheem Awalluddin who have been convicted.

However, for us in Malaysia, discipline is important. It is more important when it comes to public finances. The Federal Government must exercise fiscal discipline to address the deficit problem. If we allow the Federal Government to raise additional revenue through GST this will undermine the discipline needed to address the real cause of the problem.

The real cause of the problem is not insufficient revenue. It is the uncontrolled and runaway operating expenditure.

The Edge provided a useful analysis:

In 2012, the Federal Government revenues crossed RM200 billion for the first time but expenditure also for the first time crossed RM250 billion. The Federal Government collected RM207.913 billion, an increase of 12.1 per cent from 2011. Income tax revenue increased by 13.9 per cent, customs duties by 6.4 per cent, petroleum income tax by 22.3 per cent.

However, the federal operating expenditure for 2012 was RM207.91275 billion and RM46.932 billion for the development budget. The government has since 1999 been on a spending binge and government finances deteriorated.

Although revenue was sufficient to cover operating expenditure it was insufficient to meet the development expenditure needs. The Federal Government had to finance the difference through borrowing. This has resulted in 14 consecutive years of budget deficit which by 2012 had ballooned to RM501.617 billion amounting to 53.50 per cent of GDP.

From 1988 to 1997 the surplus of government revenue to operating expenditure grew every year. It peaked at RM21 billion in 1995. During this period, operating costs were kept in check. From 1970 to 1999 total federal operating expenditure increased from RM2.2 billion to RM45 billion. This is over 30 years. In the 13 years after 1999, operating expenditure has shot up to RM207 billion.

The biggest single year increase was 2008 when operating expenditure jumped by 29 per cent. The total operating expenditure last year rose 13 per cent.

The largest component of the operating expenditure is emoluments with pensions and gratuity, it accounts for 36 per cent. From RM18 billion in 1999, it now stands at more than RM74 billion, growing at a compound rate of 11.5 per cent. In 2008 civil servants’ payroll grew 26 per cent and last year by 20 per cent.

Salary increases are permanent and will lead to higher pensions and gratuity payments later.

Subsidies account for 21 per cent of the total operating expenditure. It grew from RM1.1 billion in 1999 to RM44.1 billion in 2013 at a shocking compound growth rate of 33 per cent. In the 28 years from 1970 to 1997 total subsidies exceeded RM1 billion only on three occasions, 1981 to 1983.

By contrast, in 2008 subsidies shot up from RM10.6 billion to RM35.2 billion.

From 1999 to 2012, supplies and services grew from RM6.1 billion to RM32 billion. In 1986, the amount was only 2.6 billion. In other words, for the 13 years before 1999, the amount grew 135 per cent. For the same period of 13 years after 1999, the amount exploded by 425 per cent.

If the expenditure had been put to good use and provided good returns the rising expenditure could have been justified.

However, a look at any of the Auditor-General’s Reports for these past 13 years will show the substantial leakages, wastages and corruption.

The leakages and wastages is estimated between RM28 billion to RM40 billion a year. Providing the Federal Government with an additional stream of revenue will not solve the fiscal deficit problem.

The estimated net revenue generated from the 6 per cent GST is only RM3.87 billion. The deficit problem can only be resolved by instituting cuts in the operating expenditure and ending the leakages, wastages and corruption.

Any gain from GST will be undone if the wastage, leakages and corruption continue unchecked.

On the same day that GST was being debated the Auditor-General’s 2013 Report was put on the MPs table. It highlighted weaknesses in improper payment, unreasonable delays in completing contracts, unreasonable prices and made 109 recommendations for correction. These recommendations will now gather dust because there is GST to provide the money to carry on the squandering and profligacy.

With parliament having allowed GST, there will be no incentive to rein in excessive expenditure and the leakages.

A government typically prefers to allow higher spending than making the hard decision to cut expenditure. Those supporting GST would typically acquiesce to higher rates of GST from time to time. There is no more toxic economic potion than the mixture of executive need for increased spending, rubber-stamping parliament acquiescence and the adoption of GST.

Greece is an example of what can happen. Access to a powerful revenue raiser like VAT could not protect it from financial crisis when it lacked the discipline to cut expenditure. The situation is like the Government filling up a bucket of water with a hole in it.

Parliament instead of asking the Government to patch up the hole gives it a second pipe. The hole will never be repaired.

Parliament in sparing the rod is spoiling the BN Government.

Further, GST will exacerbate rather than solve the problem of too much government borrowing.

Barisan Nasional MPs like Jasin argued that Malaysia should adopt GST because 160 countries have done so. Countries that have to be bailed out, as well as those teetering on the edge of fiscal collapse — including Greece, Spain, Portugal, Ireland and Italy — all have GST.

Prior to the 1960s, before the introduction of GST, the European countries had debts on a percentage of GDP below that of the United States of America. Since the introduction of GST, the average debt level of these Western European countries is higher than the US debt level.

According to IMF, the public debt of USA is 106 per cent of its GDP, Greece – 158 per cent, Spain – 84 per cent, Portugal – 123 per cent, Ireland – 117 per cent, Italy – 126 per cent, Japan – 208 per cent and Singapore – 111per cent.

For all intents and purpose, the experience in Europe confirms Milton Friedman’s famous warning that:

“In the long run government will spend whatever the tax system will raise, plus as much more as it can get away with.”

Based on the experience of the 160 countries GST will not solve the fiscal problems but in fact will make it worse.

The second reason: GST will lead to harmful effects on the economy

GST will cause consumption to be reduced, lower the GDP and Malaysians will be worse off. GST being a tax on consumption will reduce consumption and lead to a negative effect on the GDP.

At the initial rate of 6 per cent, the impact will be painful but tolerable. However, IMF in its March 2014 Report said that the 6 per cent GST rate is low because it is only a starting point. At 6 per cent it will not have a significant impact on the Government’s revenue and will have to be increased after the tax is operational. IMF said that in fact many countries have increased the GST rates after its introduction.

Based on the experience of the ten largest countries that adopted GST, the average GST rate has risen from 10.7 per cent at inception to 16 per cent, an increase of more than 50 per cent. The average rate of the Organization of Economic Co-operation and Development (OECD) is 18 per cent. The United Kingdom increased to 20 per cent in January 2011.

For GST to generate higher revenue, a combination of base broadening and rate hikes have to be considered. These measures will in turn mean a higher impact on growth. Once the rate is increased it will have a negative impact on the GDP. The increased rates will increase the consumers’ burden through higher consumer prices. As a result private consumption will fall. By increasing prices GST will reduce real wages.

Ernst & Young in a 2010 study “The Macroeconomic Effects of an Add-on Value Added Tax” prepared for the National Retailers Federation of the United States found that an add-on VAT of 10 per cent enacted to reduce the deficit would result in a loss of 850,000 jobs, a loss of US$260 billion in retail spending and a 2 per cent drop in the GDP in the year of enactment.

Malaysia will not suffer such losses but the risk of a significant negative impact is there.

GST will kill the golden goose which is private consumption in Malaysia. According to the 2013/2014 Economic Report consumption or domestic demand is the key driver of growth led by private consumption and investments.

The Government is relying on private consumption supported by household spending to lead GDP growth. GST will dampen this growth.

This is clear following the effect of structural adjustment measures such as subsidy rationalisation. The Nielsen Consumer Confidence Index for the 4th Quarter of 2013 dropped 98 points, the lowest in three years. Over a third of the Malaysian consumers surveyed cited the economy as a concern followed by increased in food prices (24 per cent). MIER also reported its Consumer Sentiments Survey and Business Conditions Survey plunged to the lowest in five years. MIER warned that with the emerging weaknesses in consumer spending domestic demand will be affected.

Due to the economy facing serious challenges with the slow recovery from global recession and the unsettling effects of quantitative easing, the effects of subsidy rationalisation and implementation of minimum wages, the adoption of GST will be too much of a shock to our system and may very well be the proverbial “final straw”.

The third reason: GST will hurt the lower and middle classes

GST is a highly regressive tax, hitting lower and middle classes much harder than wealthy families. GST will put further financial stress on the 56 per cent of Malaysian households whose monthly income is less than RM3,000. GST will result in an increase in the tax burden of the middle-income families. GST-induced price hikes would compel households to search for cheaper goods and services. However, 60 per cent of the Malaysian households will find it difficult to substitute basic necessities and essential services. The Federal Government in an attempt to reduce the regressivity of GST has provided for exemptions and zero-rating for certain basic goods for the poor.

However, the World Bank in a paper entitled “Value Added Taxation: Mechanism, Design and Policy Issues” in acknowledging that VAT (GST) is inherently regressive stated that attempts to reduce it though exemptions and zero rates have proven ineffective. It is indeed impossible to do so because one cannot segregate food, goods and services consumed by the poor from those consumed by the rich.

In any event, it appears the Federal Government has not carried out an in-depth study of the foods and services that would reduce the GST burden of the poor.

The Federal Government in the list of zero-rated foods included trout, Pacific salmon, Atlantic salmon and Danube salmon, Norway lobster, rock lobster, crayfish and oysters while canned sardines, baked beans and instant noodles are liable for the full tax.

The apparent mismatch in the zero-rated items reveals the Government’s poor sensitivities and lack of knowledge of the people’s needs.

The GST regime reminds one of the saying attributed to Marie Antoinette, Queen of Louis XVI of France. Upon being informed that the citizens of France had no bread to eat, she replied with “let them eat cake.” The French revolutionaries didn’t think too much of her idea of “People First Performance Now” and put her to the guillotine. What shall we do with ours?

Conclusion

Subsidy rationalisation and GST are the chickens coming back to roost for Malaysians. Malaysians have voted BN to rule for 56 consecutive years ignoring their extravagance, recklessness, wastefulness and corruption.

The future generations of Malaysians will have to pay for the sins of their fathers and mothers unless we can win over the 47 per cent who retained BN before the next elections. It is hoped that the pinch in their wallet will wake them up.

* William Leong Jee Keen is Member of Parliament for Selayang.

** This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malay Mail Online.

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