Truer story of GST

(KTEMOC KONSIDERS) – Malaysia-Today – ABOLISH GST NOW AND WIN MORE VOTES (extracts):

Prime Minister Najib Tun Razak should seriously consider abolishing the GST. The GST is not really bad and Malaysia is actually amongst one of the lowest in the world. No doubt this may cause a loss of RM40 billion or thereabouts a year in revenue but then this is not about economics but about politics.

You see, Pakatan Harapan is using the GST issue to turn the voters against the government. Pakatan is promising zero GST if they come to power. This may not happen, of course, but then Pakatan has only promises to offer the voters so this is what they are offering the voters, the promise that if they come to power Malaysia will have zero GST.

Hence it is crucial that the government abolish the GST and make the voters happy. Then Pakatan cannot win votes by promising zero GST if they come to power since Malaysia already has zero GST now.

I am and have always been a DAP supporter, though I must admit that lately I have been a bit fed-up with, ironically, my once idol, Lim Kit Siang, for consorting shamelessly with his once most bitter arch-foe (or archfiend, wakakaka).

As the sons and daughter of my other hero, the late Karpal Singh said (words to the effect), it would be a disaster working with a man like Mahathir – we should draw a clear line in the sand of decency and probity.

Anyway that’s for another story.

But Pakatan, mainly PKR and DAP, in calling for a 0% GST is, in my humble but fair assessment, merely a political stunt and not sound economics, and if I may further say so, quite* irresponsible.

* BTW, the English word ‘quite’ means ‘completely, wholly, or entirely’, wakakaka. You didn’t know that, did you?
I am not a blind-as-a-bat political this-rista or that-rista, as some in PKR, PAS and UMNO are inclined to be (what a coincidence, proving the buah bangsat langsat do not fall far from the langsat tree, wakakaka), …

… thus even as a long time DAP supporter I have 2 issues which I totally disagree with the leaders of the DAP, these being GST and nuclear energy where I am pro both issues while my preferred party has spoken out against them.

As citizens I believe there are certain national issues which must be multi-partisan (we can’t be bi-partisan since we don’t have just two parties) such as defence of our nation, relieving national disasters (eg. MH370, floods, earthquakes, etc) and protecting national interests (including sports).

an example as food for thoughts

Much as I believe GST as a fair taxation device to be a multi-partisan issue as it benefits the nation, I accept that there are those who disagree with it, though I only respect those who might not understand the good of the taxation concept, but regret those who are politicising it for their own political points despite knowing its benefits and fairness.

Let’s examine the current topic GST and leave nuclear energy for another post. I will draw in part on what I had written previously to argue in favour of GST, independent of politics.

Though scheduled for mid 2011, as a result of concerns and complaints, the Malaysian GST only came into effect on 01 April 2015 (no, it wasn’t an April Fool’s joke, wakakaka). Its aim was also to prepare for the day when we can no longer draw on taxes from our diminishing oil resources.

It was reported that one of the directors of the National Consumer Complaints Centre Muhammad Sha’ani Abdullah said, “The government should create more awareness on what the GST is. The public cannot be blamed for their lack of understanding, and thus, their fears”. 

I agree with him as the general Malaysian public incorrectly believes GST is a new tax at 6% in addition to previous taxes such as the Sales & Services taxes at 5 to 15%.

Sha’ani also said the GST will improve accounting, reduce tax fraud, and facilitate enforcement of the upcoming Anti-Profiteering Act.

Needless to say, Mahathir came out with guns blazing, merely shooting at anything issued by Najib, plus probably wishing (I speculate here based on Rehman Rashid’s article in his book Peninsula, wakakaka, that the Old Man was mightily jealous of AAB’s landslide election victory in 2004, probably wishing it was his, wakakaka again) he had been the one to introduce the GST.