What’s zerorising GST?


MR Prime Minister, may l ask you about the news being bandied around that you will “zerorise” the GST from 6% to 0% in this coming Budget 2018?

In other words, will that mean that there will be no more collection of the (6% rate) consumption tax on goods and services, which you anticipated to generate a sum of RM42billion in 2017.

If truly that is the case, may l congratulate you, sir! Bravo!

But didn’t you say GST is the saviour of the Malaysian economy? Didn’t you say this is our lifeline of sort for the nation, when the global oil price was erratic or unreliable and we are in need a broad-based tax?

So, if you believe you’re able to manage the economy without GST, why didn’t you think of it earlier? Why have you subjected the rakyat to this inflationary pressure of almost 3.7% for the full year and at its worst 5.1% in March this year?

Were you oblivious to the burden and sufferings of the rakyat and, in fact, aloof from the rakyat you claim to champion?

Much to our amazement, you have indeed gotten wind of the Pakatan Harapan Budget 2018’s proposal to do away or abolish the GST and reinstate the SST. We are indeed flattered by your plagiarism, as alluded by the proverbial expression that “plagiarism is the best form of flattery”.

While PH is clear and conscious of where its revenues are coming from, to cover for the shortfall in the “direct tax” once GST is no longer in place on our PH Budget, may we ask you as to how you could achieve that?

The penchant for abuses, endemic leakages and chronic inefficiencies in your procurement, management and administration system, make it a real suspect that you will ever be able to achieve a reasonable fiscal deficit that will put the rating agencies at bay.

So how do you intend to square the circle?

Finally, may l also ask you why do it now i.e. for the Budget 2018, which is the mandatory election year for the 14th general election?

Besides, why are you only “zerorising” the GST rate and not “abolish” this regressive consumption tax that equally burdens the poor, too?

Do you intend to hoodwink the rakyat i.e. the voters to mandate you and Barisan Nasional and later reintroduce it, once you’re back in Putrajaya? If ever you’re entertaining such diabolical thoughts – that will be the greatest folly and most despicable, Mr PM!

Mr Prime Minister, please take some time to allay the apprehension of the rakyat or perhaps give them the glad tidings. Either way, we opposition, including civil society organisations, would be vindicated for our relentless campaign to effectively rid the rakyat of this existential threat from the burdening GST! –October 24, 2017.

* Dr Dzulkefly Ahmad is Amanah strategy director.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.


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