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"