KUALA LUMPUR: Many Malaysians, instead of focussing on the Budget that prioritises the interests of the rakyat, are harping on the wrong end of the stick by focussing on the withdrawal of sugar subsidy and the implementation of Goods and Services Taxes (GST).
Parti Cinta Malaysia (PCM) vice-president, Huan Cheng Guan, said the 2014 Budget, tabled in Dewan Rakyat last Friday, among others, announced the removal of the sugar subsidy, implementation of GST and controls on excessive property speculation.
He said all these were intended to reduce fiscal deficit and prosper the nation to maintain economic growth to promote the well-being of citizens.
“Why is there so much furore when there is a 17-month gap from now till April 2015 when the GST will be implemented? The proposed six per cent rate is the lowest in the region (10 per cent in Indonesia, Vietnam, Cambodia and Laos and six per cent in Singapore and Thailand).
“Instead of focussing on this commendable rate, GST opposers have hurled unpleasant accusations and judgements at the prime minister by harping on their fallacious argument the GST will cause the lower income group to suffer,” he said in a statement here yesterday.
Huan said the GST automatically taxed the well-off segment of the population as they consumed more and the lower income group will not be burdened.
He said the opposition leaders and activists had deliberately ignored the government’s decision not to impose GST on basic food items such as rice, salt, sugar, water and the first 200 units of electricity.
“The implementation of the GST will surely make consumers more prudent in their spending as the more we spend, the more we are taxed,” he said, adding that GST was certainly a more efficient tax system than the current framework as it could strengthen the fiscal position of the nation.
Huan said the GST could boost government income and administrative efficiency as it would widen revenue collection, ensure competition and reduce tax evasion with the hope for economic resilience and competitiveness. — Bernama