Opposition does not want sin taxes used to pay civil servants

Looi Sue-Chern Looi Sue-Chern Updated 7 years ago · Published on 8 Apr 2019 5:30PM · 4 Comments

A bar serving alcoholic beverages in Kuala Lumpur. Duties from liquor provided the government almost RM500 million in revenue last year. – The Malaysian Insight file pic, April 8, 2019.

OPPOSITION lawmakers today suggested that Putrajaya should not use revenue from “sin taxes” to pay civil servants.

They wanted the sin taxes – revenue derived from alcohol, cigarettes and gambling, especially – to be excluded from the government’s consolidated fund that is used to pay the Muslim-majority civil service.

Ahmad Maslan (Pontian-BN) asked the government if it had plans to keep the sin tax revenues separate, like what was practised by the previous administration under Najib Razak (Pekan-BN). 

“Will these sin taxes be separated from the consolidated fund so it is not mixed with funds used to pay civil servants, who are mostly Muslims?” he asked.

Deputy Finance Minister Amiruddin Hamzah said there was no plan at the moment.

“The revenue from sin taxes goes into the consolidated fund, which states the sources of revenue clearly. 

“Salaries for the civil service come from the fund,” he said when winding up his speech in the tabling of the Excise Bill in the Dewan Rakyat this afternoon.

R.S.N. Rayer (Jelutong-PH) interjected and asked if revenue derived from seized properties in corruption cases could also be considered a sin tax.

He used the bungalow of wanted businessman Low Taek Jho, the accused mastermind of the 1Malaysia Development Bhd scandal, as an example.

“If we sell Jho Low’s bungalow, will we call the revenue sin tax? Corruption is also not ‘halal’,” he said.

Jelutong MP R.S.N. Rayer asks if proceeds from the sale of corruptly obtained assets should be placed in a separate fund, too. – The Malaysian Insight file pic, April 8, 2019.

Low’s family bungalow in Penang was seized in January by Bukit Aman’s Anti-Money Laundering and Anti-Terrorism Financing Prevention division.

Amiruddin said the government’s revenue from other sources greatly exceeded what it earned through sin taxes.

When Siti Zailah Mohd Yusoff (Rantau Panjang-PAS) repeated Ahmad’s question, on whether the PH government could put money from sin taxes into a separate account, the Kubang Pasu MP from Bersatu said the government could think about it.

To Ahmad’s other question on how much money the government had collected through excise duties, Amiruddin said RM536.9 million came from motor vehicles and RM87.9 million from motorbikes and scooters last year.

“Malt liquor provided RM412.65 million, while hard liquor, RM40.2 million.

“Duty from cigarettes was RM159.6 million.

 “We also collected RM157,369 from playing cards, while mahjong tiles provided, RM2,064,” he said, adding that there was no plan to increase the excise duty for alcoholic beverages and cigarettes. – April 8, 2019.

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Comments

  • This is akin to separate water from the sea... hahaha.

    Posted 7 years ago by Tanahair Ku · Reply

  • Good suggestions by nasi goreng GST IQ 3.85. let's sperate the currency into halal and non halal too. Let's see who will be suffering the most.

    Posted 7 years ago by Chee yee ng · Reply

  • Excellent idea indeed. In fact, taxes from the infidels also should not be used. The sin taxes and taxes from Infidels and companies owned by infidels also should not only be used to pay civil servants but also to build mosques and other facilities used by the chosen people. Its dirty money to some. In fact, based on this reasoning, we should also have 2 currencies, one for the chosen people and the other for infidels. How stupid can these people get?

    Posted 7 years ago by Mike Mok · Reply

    • It has been reported that the Chinese community pay 90% of all Income tax in Malaysia. Can we, by the same token, ask that these 90% tax be used only for the benefit of ethnic-Chinese. Isn't all this talk about ethnic origin more divisive? Can we all move towards the day when we do not mention race. I am a Malaysian and that is that.

      Posted 7 years ago by Yok Foo Yap · Reply