Saturday, February 27, 2010

Review GST Decision

The federal government should review its decision to implement GST by mid-2011. The opposition parties and several BN politicians e.g. Khir Toyo have urged the federal government to review its decision to implement the GST.

GST is a useful stream of revenue for the government if it is implemented at the right moment. At present, the government should focus on enhancing the per capita income of the people instead of introducing a consumption tax which may suppress domestic demand.

Malaysia's GDP average per capita is slightly above USD7,400 (RM25,000) which is still below RM36,000, the base limit for taxable income. It means that more than 85% of all workers are not taxable.

Khir and others are right to point out that GST implementation will cause price increases between 15 to 25 percent.

High prices will hamper purchasing power if average salary remains stagnant. The government has promised to look into efforts to double our income by 2015. This should the primary focus on the government instead of implementing GST too early.

Job creation is also on the low. There is hardly any stimulating news on the economic sector. Without a real focus on the economy, it is going to be difficult to jump start the economy and Malaysia will remain an economic laggard post-2012 when all other regional economies are growing and expanding.

In the midst of an economic crisis, it is sad to note that some segment of politicians, NGOs and communal zealots are more interested to drum up communal and religious tension and pressure instead of focusing on unity.

"By union the smallest states thrive. By discord the greatest are destroyed. ~ Sallust"

10 comments:

Anonymous said...

WHAT TO DO THE GOVEREMENTS OF TODAY IS BN (BARISAN NONOK, BARISAN NERAKA, BARISAN NAJIS, BARISAN NO AND BARISAN NIAAMAAH )THE NAJIS REGIME THAT FULL OFF SHIT. ECT LIKE TWO LAWS FOR MALAYSIA,PERAK CASE ON THE ACCOUNT OF THE THREE FROGS,TEO BENG HOCK AND KUGAN CASE,MACC SELECTIVE PROSCECUTION,PDRM THE DOG OF UMNO AND UNDER DETENTION MANY SUSPICIOS DEATH,ALTANTUYA CASE AND SUBMARINE WITH COMMISSION,JET PLANE LOST,MEDIA CONTROL BY BN ESPECIAALY UTUSAN THE MOUTH OF BN RACIST REMARK,WITH ALL THE STUPID MINISTER LIKE HISAPMUDIN TO BATH THE KERIS WITH THE CHINESE BLOOD,THE COW HEAD INCIDENT,THE BURNING OF THE CHURCHES MOSQUE AND SIKHS TEMPLE,WITH THE LATEST ANWAR SODOMY 2 NO PENATRATION BUT GOT SPERM ON SAIFUL ASS. THIS IS WHAT WE CALL SATU MALAYSIA RAKYAT DIUTAMAKAN DENGAN KENAIKAN HARGA MINYAK,GULA DAN GST.DIMATA DUNIA MALAYSIA ADALAH NEGARA YANG PARIAH.

Anonymous said...

First thing first KhooKayPeng and to put the perspective in order. Khir Toyo is not an economist. Please do not quote him as if he is making a strong statement and getting credit on this screw up GST.

The findings were all unravelled by the hard work of Pakatn Rakyat. This Indo is just parroting them and trying to score points.

Anonymous said...

For the Muslim NGOs and UMNO, economy is a non-issue.
All they care is Ketuanan Melayu, this Melayu and that Melayu and blame the Chinese even though many of them get their monthly salaries from Chinese bosses.

Anonymous said...

cos after, stomach full nothing to shit.let the economy fail and when these people goes hungry they will do something productive, baru merasa.

CP said...

I think Khir Toyo have understood wrongly on GST having cascading effect at each stage of production. The final GST paid by end customer is 4% and not compounded increase of 12% to 16%.


Getting to grips with GST – what you should know [The STAR]
http://biz.thestar.com.my/news/story.asp?file=/2010/2/25/business/5663013&sec=business

How will the tax be charged?

GST will be charged at 4% of the value added to goods/services at each stage of production/ distribution. This rate, indicated by the Finance Minister, is known as the standard rate.

How does GST differ from the sales tax which it will replace?

Sales tax is a single stage tax whereas GST is multi-stage (i.e. the latter is levied at every value added stage in the distribution chain). Unlike the sales tax, GST has no cascading effect and does not lead to price distortion.

Anonymous said...

so at last they admit that they don't have the ability to compete in this global.jaguh kampung? huh?

Anonymous said...

Seriously, GST is a BIG Mistake. Most accountants and auditors and tax agents do nt support it. Those accountants, auditors and tax agents who supported it are from the big and bigger mid size firms where all they care is fees. I have zero respect for these big audit/tax/consultancy firms whose main objectives from this GST implementation is more fees.

I pity those middle and lower income people. They had better brace themselves for lower quality of life and listen to the advise of former PM i.e. Ubah Gaya Hidup.

Anonymous said...

NON of them is an economist..!

If so smart, rakyat don't need to analized for them. Don't even have to advice them at all.

Pity my "entire" Malaysia & Malaysians........!!!

Anonymous said...

No to GST. It will increase the cost of living. In every country where the govt introduced GST, it would get booted out of office. It is time for Malaysia to do the same.

Anonymous said...

Why GST now when economically it is not feasible(when the PerCapita Income has not reach feasible level)? This goes to show the govt is hard pressed for income as oil revenue is dwindling and foreign investment slowed.The govt also has to give out handouts to his cronies/supporters for survival.So those NGOs who still profess on racial line(PERKASA,MCCM),please use your otak properly and dont bark here and there like a 'mad dog'.