The day after the 1 night stand before: the aftermath of 2013 budget
Only this time the business as usual will be back in with a greater vengeance because this time, the cost of procurement is very much higher than before and the expected and desired returns, will have to be even greater.
Lee Wee Tak
The 2013 spend and feel good budget has been read for the nation’s attention and parliament’s debate. The debate is probably useless, for the Janji Ditepati administration, chronic, habitual spending above budget is a given. This habit is well documented
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Malaysia Putrajaya asks for RM14b more to spend
UPDATED @ 12:04:39 14-06-2012
By Shannon Teoh
Jun 14, 2012
KUALA LUMPUR, June 14 — The federal government tabled a supplementary supply Bill today, asking for RM13.8 billion more to spend this year, fuelling fears the Najib administration will not be able to rein in the deficit and breach the statutory debt ceiling.
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Therefore, rather than dwelling too much in detail into a current and soon to be derailed budget, let’s project into the future base on the path Malaysians been dragged down unto for the past decade.
As reported by the Star:
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*Individual income tax rate to be reduced by 1 percentage point for each grouped annual income tax exceeding RM2,500 to RM50,000. The measure will remove 170,000 taxpayers from paying tax as well as provide savings on their tax payment.
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This is a sure sign of GST coming upon us because cut in personal income tax (a.k.a. direct tax) goes hand in hand for imposing GST. Let’s look at Singapore for example:
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GST was implemented at a single rate of 3% on 1 April 1994, with an assurance that it would not be raised for at least five years. To cushion the impact of GST on Singaporean households, an offset package was also introduced. Simultaneously, corporate tax rate was cut by 3% to 27%, and the top marginal personal income tax rate was cut by 3% to 30%. The initial GST rate of 3% was among the lowest in the world, as the focus was not to generate substantial revenue, but to allow people to get adjusted to the tax.[4]
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However, Malaysians are not ready to switch to GST because most of Malaysians can’t even afford personal income tax!. Also, the reasons for Singapore and Malaysia to introduce GST are not the same.
With this 2013 gula and then GST, while you save 1% on your income, almost every Ringgit and Sen you spend will be taxed at 4% or whatever eventual rate that will be levied on us hence for people living on debts, you may probably end up paying more taxes. This blogger is not part of the BN administration but his/her speculation is base on sources from within:
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BN and PR should agree to GST after polls says Idris Jala
By Lee Wei Lian
March 27, 2012
KUALA LUMPUR, March 27 — The country’s two rival political coalitions should cooperate on tax reforms once the political temperature has simmered down after the upcoming general elections said Datuk Seri Idris Jala today
In Chinese, there is a saying “秋後算帳” i.e. letting someone or something off for the moment only to come back later; invoke the past and punish as such. BN administration already done that with Suqiu pleaders (whose list of request is quite in line with Wawasan 2020 and 1Malaysia, and less vocal compared to the current Chinese educationists’ voices which are deemed by Nazri to be reasonable)
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I’m no hypocrite, Nazri tells MCA
Minister in the Prime Minister Department Mohamed Nazri Abdul Aziz has brushed aside the claim by MCA leaders that his support for Dong Zong’s eight-point demand for Chinese education is mere diplomatic manoeuvring.
“Of course we have to be diplomatic, we are politicians – but not in the sense that I am a hypocrite…
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(er…notice the get out clause?)
For people living in vibrant night light circle, this could be called the morning after the night before situation. Once the passionate objective is achieved, time for cold showers, breakfast and business as usual.
Only this time the business as usual will be back in with a greater vengeance because this time, the cost of procurement is very much higher than before and the expected and desired returns, will have to be even greater.
The existing cosy political-economic union calls for GLC and Government initiatives to dominate economic activities. When the federal government dishes out some much, it needs to recoup.
The ubiquitous quote nowadays “GST is a mean to widen tax base” is a , borrowing Nazri’s words, diplomatic way of saying in Malaysian BN context, money collected from the people and god’s gift to Malaysia has been squandered big time and there is a great need to ask for more. Bailout with tax payers’ money, i.e. future and security.
Therefore, there is an unmistakable trend of awarding of major contracts and new government measures that ask the rakyat to contribute even more than we have already. Apart from GST, there is 1Care scheme which should resurface after its disappearance before GE
