Exempt Sabah Sarawak from GST

Monday, 20 May 2013 admin-s

Datuk Dr. Jeffrey Kitingan

The BN government should stop beating around the bush and just plainly say that it needs to raise another RM27 billion from GST, which is the equivalent to about RM1,000 per person per year, to cover the ballooning national debt which have been increased partly by the various Santa Clause programs to fish for votes in the recent general elections.

“The people of Sabah and Sarawak should be exempted from the Goods and Services Tax (GST) that appears imminently to be implemented by the BN Federal government at any time” said Datuk Dr. Jeffrey Kitingan, STAR Sabah Chief.

Foremost, the PM needs to practice what he says and start implementing his transparency programs by not “testing the people” by using mouthpieces for feedback on the intended GST implementation. 

The BN government should stop beating around the bush and just plainly say that it needs to raise another RM27 billion from GST, which is the equivalent to about RM1,000 per person per year, to cover the ballooning national debt which have been increased partly by the various Santa Clause programs to fish for votes in the recent general elections.

The BN government should not treat the people as fools anymore. People can understand the need to increase revenue to cover the national debt but whether the need to tax and burden the people is another matter altogether. The government should pay attention to reduction of economic leakages and to wipe out corruption which is probably the biggest cause for any unjustified increase in the national debt.

As for the GST itself, the federal government should exempt Sabah and Sarawak from its implementation. The GST will burden Sabahans and Sarawakians who are already poor.

Sabah and Sarawak are more than justified in being exempted from the GST implementation.

Firstly, Sabah and Sarawak, both with riches and wealth have been robbed and are now suffering from being made the two poorest states in Malaysia. In 2012, RM17.88 billion in oil revenue were siphoned by Petronas from Sabah and another RM35 billion from Sarawak. Sabah lost another RM24 billion in federal taxes and revenues collected from the state.

Secondly, the crippling cabotage policy is not only increasing the living costs of Sabahans but is stifling Sabah’s economy and making Sabah an uncompetitive investment destination. Thus, depriving our youths of further job opportunities.

If the PM is serious with his “Rakyat Didahulukan” slogan, the PM should immediately abolish the cabotage policy. There are no two ways about it. Yet, the federal and state governments are deaf to the pleas of the people to have the cabotage policy abolished.

Thirdly, rural Sabahans and Sarawakians have low household incomes and this is made even worse by the federal government’s minimum salary level which has fixed a lower minimum of RM900 for Sabah and Sarawak and discriminates against them compared to West Malaysians with a threshold level of RM1,000.

Last but not least, instead of imposing the GST on Sabah and Sarawak, the PM should stop the marginalization of Sabahans and Sarawakians and implement programs in both states to increase the income levels and improve their livelihoods, consistent with his “Rakyat Didahulukan” slogan.

If the PM fails to exempt Sabah and Sarawak from the GST implementation, he should be wary of the consequences of being the last Umno Prime Minister.

The people in Sabah and Sarawak have awoken to the concept of Sabah and Sarawak being the kingmakers and can topple the BN federal government at any time. This “kingmaker” role and leverage can be seen in the increased composition of Sabah and Sarawak lawmakers in the new Cabinet and demands for more.

“I will personally be meeting further with Sabah and Sarawak leaders and work on bringing this kingmaker role to the next level. We need to work towards the restoration of our rights and autonomy if it means toppling the current BN regime” concluded Dr. Jeffrey.

PKR slams GST proposal

Samah Mariam | May 20, 2013

A PKR leader wants the government to eliminate dubious mega projects and corruption instead of introducing GST.

PETALING JAYA: PKR trade and investment bureau chief Wong Chen has called on the government to do away with unnecessary mega projects and corruption before introducing the Goods and Services Tax (GST).

Rebuking Minister in the Prime Minister’s Department Idris Jala for proposing a 7% GST, he said Malaysia can avert a major financial meltdown, if the government eliminates mega projects and weeds our corruption.

He said this in reaction to Idris’ statement recently that the government was mulling the implementation of the GST at 7%, similar to Singapore.

The minister also said the 7% rate would increase government revenue to about RM25 billion a year.

Wong, who is also Kelana Jaya MP, said the country’s economic woes was caused by a weak tax base, profligate spending and unabated corruption.

He said about 78% of the population fall under the non taxable category earning less than RM2,500 a year.

“Introduction of the GST would be an added burden to the people. It is not tax evasion. People just do not make enough money to pay tax,” he added.

On the argument that government would reduce corporate and income tax to facilitate the implementation of GST, Wong said this would only benefit the rich as the poor would end up paying more.

“In essence, the government’s GST plan is regressive in nature unless they can cut on excessive spending and corruption… BN has no right to introduce GST,” he added.

Wong said the 7% GST proposed by the government was too high and would in return spike the nation’s inflation.

“The minister’s figure is not the same as the Finance Ministry’s proposal which wanted 4% GST. In 1994, Singapore introduced GST at a low rate of 3%. It took them nine years to increase it to 4% in 2003 and subsequently to 7% in 2007,” he added.

“So if the minister loves the Singapore model so much, would he commit to a 3% GST rate for nine years if there is a real need to implement the new tax system?” he queried.

- See more at: http://www.freemalaysiatoday.com/category/nation/2013/05/20/pkr-slams-gst-proposal/#sthash.z5XXEm1R.dpuf

M'sians still can't afford to pay GST, what more at 7% start rate - Wong Chen ticks off Idris Jala

Monday, 20 May 2013 11:38Written by Wong Choon Mei, Malaysia Chronicle

UPDATED VIDEO INSERTED PETALING JAYA - Unlike in Singapore, the Malaysian government's plan to implement Goods and Services Tax is regressive as the majority of Malaysians already find it burdensome to make ends meet, and the only ones to benefit would be the corporate fat cats and business cronies of the political elite, an Opposition leader said on Monday.

Based on newly-elected Member of Parliament for Kelana Jaya Wong Chen's numbers, 88% of Malaysia's 28 million population do not pay tax as they fall below the taxable level.

Meanwhile, due to decades of pump-priming the economy with mega infrastructure projects - many of which have turned into white elephants - Malaysia's national debt is at an all-time high and even by official estimates nearly breaching the 55% ceiling imposed by law.

Analysts however believe the 55% level has already been breached as the government - in computing the figures - have not included the loans and debts of government-linked firms such as public utilities Tenaga and Telekom as well national car maker Proton, which the experts have said they should.

As such, the GST is seen as a lifeline for the BN government to alleviate the pressure on the growing fiscal deficit. But its proposal has met stiff resistance from a public already struggling with high costs of transportation and food.

'PKR notes that the BN government is facing a fiscal crisis of its own doing. PKR believes that the 3 main causes of this crisis are as follows: a weak tax base, profligate spending and unabated corruption," Wong Chen told a press conference on Monday.

"The PKR stand is that - show us that you are willing to cut corruption, what have you done to reduce mega projects and can you balance your books (fiscal position). If you do these and still can't balance your books, then you are entitled to consider introducing GST but start at a very low level and not at 7%. Don't give us the lip service, show us the savings, For example the MRT is good but does it have to cost RM60billion - seriously guys?"

Don't try to pass the bill for BN's excesses to the main on the street to pay

Wong Chen slammed the BN for allegedly trying to pick on the man on the street to pay off serious financial problems that it has brought onto itself and the nation.

"We understand the rationale for GST is to widen and improve the existing tax base. However, the current weak tax base is not a matter of tax evasion per se but a reflection of the poor household earnings of the majority of Malaysians. The majority of Malaysians simply do not have sufficient income to pay income tax," said Wong, who also heads the PKR investment bureau.

"The current problem of a weak tax base is about low pay and income security. Therefore the rationalse for BN's GST tax plan to widen the tax base is in fact flawed. Promising corporate and income tax cuts to offset GST will only help the rich. In other words, BN's GST plan is regressive in nature and will essentially see the poor end up paying more than the rich."

Why 7% - who can afford?

Wong took to task Prime Minister Najib Razak, who is also the Finance Minister, for trying to push through an "exorbitantly high" 7% GST rate. He pointed to the Singapore example that officials in the Malaysian Finance Ministry such as Minister in the PM's Office Idris Jala have been alluding to in the press as a model for Malaysians to follow.

"Lastly, Idris Jala cited the current Singapore GST rate iof 7% as a model for Malaysia. This is an alarming departure from the 4% rate that is being proposed by the Ministry of Finance," said Wong Chen.

"We wish to remind the Minister that when Singapore introduced GST in 1994, it was a low rate of 3% and the Singapore government kept it low for 9 years before allowing an increase to 4% in 2003. It only increased to 7% in 2007, 13 years after GST was introduced. If the Minister loves the Singapore model so much, will he commit to 3% with a 9-year no-hike moratorium?"

Malaysia Chronicle

Read more: http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=102211:malaysians-still-cannot-afford-to-pay-gst-what-more-at-7-start-rate-wong-chen&Itemid=2#ixzz2YVR4VlGi
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PKR: Just what is the proposed GST rate?

• Ram Anand
• 1:21PM May 20, 2013

Idris Jala, the minister in the Prime Minister’s Department, has been asked to state the exact Goods and Services Tax (GST) tax rate, given the confusion that has been created.

PKR’s Kelana Jaya MP Wong Chen said that, in a parliamentary debate last year, the government had said the proposed rate would be four percent.

However, Idris had hinted during a forum last Friday that the government might look at a seven percent rate, following the Singapore model.

“If they really want to follow the Singapore model, they should start with three percent, because Singapore started with three percent,” Wong (right) told a press conference today.

He also criticised the government for not taking measures to curb corruption and overspending, and said BN has “no right” to talk about GST until it completes tackling more fundamental issues.

“The current fiscal crisis can be averted by eliminating mega projects of dubious benefit and excessive costs, and by tackling corruption seriously,” Wong said.

“Unless, and until it demonstrates that it can cut down on profligate spending and effectively fight corruption, the BN government has no right to introduce GST,” he further added.

Wong said that though PKR understands the rationale behind the government’s plan to widen the tax base, it also notes that the current tax base is not because of tax evasion, but due to poor household incomes.

“The current problem of a weak tax base is about low pay and income insecurity.

“(Therefore,) Promising corporate and income tax cuts to offset GST will only help the rich,” he stressed.

Pelan GST BN tekan rakyat bawahan

Muhammad Faizal,

20 Mei 2013

PETALING JAYA: Penurunan cukai korporat dan cukai pendapatan sebagai 'off-set' kepada perlaksanaan Cukai Barangan dan Perkhidmatan (GST) hanya membantu orang kaya namun pada masa sama memberi tekanan kepada rakyat bawahan.

Ini kerana hanya sekitar 10 peratus daripada rakyat negara ini yang membayar cukai tersebut sedangkan rakyat yang berpendapatan rendah akan menerima kesan paling teruk kerana mereka terpaksa membayar GST sama seperti mereka yang berpendapatan tinggi. 

Ahli Parlimen Kelana Jaya Wong Chen berkata, kelemahan kerajaan BN dalam pentadbiran serta urus tadbir kewangan menyebabkan mereka ingin segera melaksanakan GST.

Menurutnya, BN kini sedang cuba mengatasi krisis fiskal negara akibat kelemahan mereka sendiri khususnya asas cukai yang lemah, pembaziran perbelanjaan dan rasuah yang ketara.

Wong Chen berkata krisis kewangan ini boleh dielakkan dengan menghapuskan projek-projek mega yang tiada manfaat atau mempunyai kos yang berlebihan dan dengan menangani rasuah secara serius.

"Jika kerajaan tidak dapat membuktikan mereka mampu mengurangkan pembaziran dan membanteras rasuah dengan berkesan, kerajaan tidak mempunyai hak untuk memperkenalkan GST," katanya pada sidang media di ibu pejabat PKR hari ini.

Sementara itu mengulas kenyataan Menteri di Jabatan Perdana Menteri Idris Jala, yang membayangkan kerajaan mungkin melihat kepada kadar 7 peratus, berdasarkan model Singapura, Wong Chen pandangan itu dilihanta sangat membimbangkan.

Katanya, Singapura memperkenalkan GST pada tahun 1994 lagi dengan kadar permulaan yang rendah iaitu 3 peratus sahaja dan ia mengekalkan kadar tersebut selama sembilan tahun sebelum membenarkan peningkatan kepada 4 peratus pada tahun 2003.

Wong Chen mempersoalkan jika kerajaan berminat untuk menjadikan Singapura sebagai model, maka GST perlu dibuat pada kadar 3 peratus untuk tempoh selama sembilan tahun akan datang.

Bantah GST, selar keborosan kerajaan BN

20 Mei 2013

1. Dewan Pemuda PAS Malaysia (DPPM) menolak cadangan Kerajaan Barisan Nasional yang nekad melaksanakan Cukai Perkhidmatan dan Barangan (GST) yang sebelum ini telah menerima bantahan di Parlimen dan seluruh negara sejak 2011. Amat dikesali kerana dengan mandat undi popular sebanyak 47% BN begitu angkuh untuk menghukum rakyat yang majoriti tidak mengundi mereka.

2. Kenyataan Menteri di Jabatan Perdana Menteri, Senator Datuk Seri Idris Jala bahawa Malaysia mampu memperolehi pendapatan negara mencecah sehingga RM27 bilion, jika cadangan cukai barangan dan perkidmatan (GST) dilaksanakan pada kadar 7 peratus, seperti di negara jiran, Singapura amatlah mengejutkan kerana pada 2011 Senator BN ini mencadangkan GST pada kadar 4 peratus sahaja. Dengan kenyataannya baru-baru ini menunjukan Kerajaan BN yang baru ini begitu tamak dan terdesak mengurangkan kadar defisit dengan menaikkan cadangan asal dari 4 peratus kepada 7 peratus iaitu hampir sekali ganda. Malah kadar itu dilihat lebih tinggi dari kadar cukai perkhidmatan dan jualan sedia ada sebanyak 6 peratus sahaja. 

3. Kerajaan BN juga sehingga kini masih gagal menyenaraikan bekalan makanan, barangan komoditi dan perkhidmatan dikatakan mahu dikecualikan dari GST atau sifar cukai. Apa yang pasti apabila cukai ini dikenakan, rakyat sebagai pengguna akhir sebenarnya akan membayar GST sebanyak 28 peratus bagi menampung GST yang ditanggung oleh Pengeluar atau pengilang (7 peratus), Pemborong (7 Peratus), Peruncit (7 peratus) dan GST Pengguna sendiri (7 peratus). Pengguna tidak sedar kerana dalam resit hanya ditunjukkan bil GST 7 peratus sedangkan 21 peratus GST yang dikenakan kepada Pengeluar, pemborong dan peruncit sudah dimasukkan dalam kos kenaikkan harga barang.

4. Alasan bahawa pengenalan GST diimbangi dengan penurunan cukai pendapatan juga tidak relevan kerana kelompok yang membayar cukai pendapatan di negara ini hanya sekitar 10%. Jika dilaksanakan juga, rakyat yang berpendapatan rendah akan menerima kesan paling teruk kerana mereka terpaksa membayar GST sama seperti mereka yang berpendapatan tinggi. Ini menyebabkan jurang antara golongan miskin dan kaya di negara ini semakin besar yang akhirnya akan melonjakkan kadar inflasi negara lebih dari 3.5 peratus di masa hadapan.

5. DPPM mengesa Kerajaan BN membatalkan hasrat melaksanakan GST dan juga mengurangkan kadar cukai perkhidmatan dan jualan sedia ada dari 6 peratus kepada kurang dari 4 peratus. 

6. Sebagai langkah meningkatkan kadar pendapatan negara, penguatkuasaan kutipan Cukai Pendapatan perlu dibuat secara telus. Begitu juga kutipan hutang kepada sektor swasta dan korporat khususnya dari kroni-kroni BN wajib dibuat secara jujur. Kita tidak mahu hutang korporat dihapuskan begitu sahaja atas faktor menjaga kepentingan kroni seperti yang Kerajaan BN berikan kepada Tan Sri Tajuddin Ramli, di mana hutang korporat MAS berjumlah RM589 juta dihapuskan begitu sahaja sedangkan peminjam PTPTN dikejar sampai ada yang disekat ke luar negara dan dibawa ke Mahkamah kerana gagal membayar hutang. 

7. Sehingga kini, Kementerian Kewangan juga mengesahkan yang Kerajaan BN masih gagal mengutip hutang korporat dari Kumpulan YTL sebanyak RM53.1 bilion, Kumpulan Tan Sri Syed Mokhtar sebanyak RM 34.3 bilion, UEM Khazanah RM 19 bilion, Kumpulan Genting RM 16.4 bilion, Kumpulan Berjaya RM 8.8 bilion, Axiata Khazanah RM 11.5 bilion dan banyak lagi. Jika hutang-hutang ini dikutip, kerajaan bukan sahaja mendapat RM 27 bilion setahun, malah lebih dari itu dan tidak perlu membebankan rakyat yang berpendapatan rendah dengan melaksanakan GST.

8. Kerajaan BN juga haruslah mengamalkan dasar perbelanjaan berjimat cermat dan tidak berbelanja sesuka hati demi meraih sokongan rakyat. Pendedahan Datuk Seri Mohamed Nazri Abdul Aziz di Parlimen sebelum ini, bahawa delegasi Perdana Menteri yang melawat London, New York dan Washington tahun lepas sahaja sudah mencecah RM3 juta! amat mengejutkan rakyat sedangkan anggaran sebenar bagi lawatan di tiga tempat ini hanyalah RM 400 ribu. Jika pembaziran seperti ini di teruskan oleh pemimpin BN, sampai bila pun negara akan terus mengalami belanjawan defisit.

9. DPPM menyeru rakyat dan NGO-NGO bangkit bersatu menolak GST ini bagi menjaga kepentingan semua. Negara kita tidak miskin, tetapi yang memiskinkan negara adalah pemimpin BN yang boros dalam berbelanja dan mengawal kewangan negara. 

10. Negara akan bankrap jika BN terus mengamalkan dasar perbelanjaan sebegini dan dalam masa yang sama hutang kroni tidak dikutip dan rakyat pula dibebankan dengan pelbagai cukai baru dan kenaikkan harga barang.

Nasrudin Hassan

Ketua DPP Malaysia