What the Chinese press say
AS we entered the month of October, heavy rain lashed various parts of the country, and while incessant afternoon showers left behind puddles and pools in the towns and cities, the Domestic Trade, Co-operatives and Consumerism Ministry also created shockwaves by announcing a reduction in petrol and diesel subsidies.
From Oct 2, Ron95 petrol and diesel cost 20 sen more, and as always, after initially hearing the news, many motorists made a beeline to the petrol stations to top up their tanks before the increase took effect the next day.
However, on Oct 3, Prime Minister and Finance Minister Datuk Seri Najib introduced something that received even greater attention from the people – Budget 2015 – which included, among others, the introduction of the Goods and Service Tax (GST).
This long discussed Tax will be implemented on April 1, 2015, but will the people react to it in the way they did to the announcement of the hike in petrol price?
Will they go on a wild shopping spree on the eve of the implementation of this new Tax? Well, the answer will be revealed in the days leading up to April Fool’s Day next year (when GST comes into effect).
Economists say the implementation of this new Tax will inevitably set off a round of inflation.
Our government needs to cut the debt deficit gradually and adjust the allowance of many necessities, not to mention, subsidies for petrol.
There is no doubt that on April 1, 2015, inflation will rare its ugly head. Therefore, drawing up this year’s Budget must have been one of the most difficult challenges ever faced by the BN government. And implementing it in the spirit of its conception and intended actualisation will be no less challenging!
Our country has not yet attained high-income nation status while private sector salaries have not increased even though GST implementation has already been announced.
In the face of rising living costs, how will the government convince the people that via the sum total of Budget 2015, the new Tax will not make life more difficult but will instead lead to Malaysia becoming a better country?
If you support implementation of this new Tax, then it’s actually a very fair system. Consumers will be required to pay more tax and through this, the scope of the new Tax can be expanded and a stable income generated for the nation’s coffers regardless of whether the national economy is good or bad.
However, for the lower strata of society, GST will exacerbate their burden because they also have to bear the pressures of inflation.
What’s more, according to National Bureau statistics, 40 per cent of the population live on a monthly income of less than RM3,000 on average.
Sabah and Sarawak — even though regarded as BN states – still have the poorest families.
Another report claimed Malaysia has a serious disparity of wealth. Even in the nation’s capital Kuala Lumpur, the income growth rate and the rate of owning a house are the lowest in Malaysia. All these factors show the socio-economic difficulties the people are facing.
Whether Budget 2015 will address bread and butter issues or whether the government can implement the new Tax without affecting development of the national infrastructure remains to be seen.
Of course, proper economic and financial management is of the greatest concern. This should be subjected to a separate special report under the Auditor General’s Department.
It’s imperative to keep tabs on our expenditure and exercise prudence to avoid leakages, excesses and wastage. This will ensure continued economic resilience – and growth – in the face a volatile global economic situation. (From Oriental Daily).