GST will oppress the poor, says MP
(Free Malaysia Today) – Kuala Selangor MP Dr Dzulkefly Ahmad (picture) says the impending Goods and Services Tax (GST) is regressive when it is imposed across the board and will make the poor suffer.
Since everyone would be paying the same rates, the tax would actually penalise the lower-income groups in both urban and rural areas, he told FMT.
To make matters worse, he added, the tax would bring inflation with it.
“When the GST is imposed soon, the inflationary pressure will surely affect the poorer sections of society even if it is only temporary,” he said.
“The GST may perhaps be more appropriate when we are able to increase the income of the lower income groups and move our economy to a higher income economy.”
The Federation of Malaysian Consumers Associations (Fomca ) has suggested that the GST be phased in at a lower rate than the four percent that the Najib administration has proposed. Fomca Secretary-General Muhammad Sha’ani Abdullah told recently that a gradual implementation beginning at one or two percent would help cushion inflationary effects while educating traders and consumers on the benefits of the tax.
