Wednesday, May 02, 2018

Oppose for the sake of opposing

FMT - High-earners may punish PH for no-GST plan (extracts):

The opposition coalition’s insistence on abolishing GST (goods and services tax) should it win the coming general election could be both a boon and bane for the rakyat.

The abolition of the GST is favoured mostly by those who earn less — largely those in the B40 (Bottom 40) income category.

Those earning good incomes, especially businessmen and professionals, might not be in favour of doing away with GST, as the new taxation system encourages them to work harder and earn more.

This must be surprising for some but in fact, the GST is a tool to help the government collect tax from consumption and to allow it to reduce income tax. Subsequently, it will motivate the people to work harder because of the lower income tax, thus boosting economic activities.

Should the GST be removed and the sales and services tax (SST) return, for sure the income tax will increase and eventually discourage people from working hard to earn more, as it would result in higher tax payments.

Similarly, those in manufacturing would tend to limit their production to avoid bigger turnover and subsequently a hefty tax payment.

In other words: the harder you work, and the higher your income rises, the more tax you have to pay.

A diversified tax system that relies on income and consumption taxes is superior to one that relies excessively on income tax.

Adli Amirullah, economic and business research coordinator at the Institute for Democracy and Economic Affairs (IDEAS), says that reverting to SST may not guarantee that the prices of goods and services will come down.

He even warns that bringing back SST may increase the prices of goods because of double taxation in the tax regime.

I know, you know and the federal opposition know that the GST system is far far superior to the SST system and a strategic boon for the nation, and also that the GST system has been designed to return the money collected to the poorer and middle class people which are usually the higher spender.

Under the GST system, many fresh consumables like rice, fish, prawns, raw meat, vegetables, cooking oil, even petrol, etc are NOT tax-ed.

Whether the GST system is properly run in Malaysia, with some exploitative people currently taking unfair, illegal and unscrupulous advantage of it, it will nonetheless become more correct and sufficient in the near future.

But politics demand novelties especially from opposing sides, thus the federal opposition (sadly) sees fit to oppose the ruling party's GST system just for the sake of opposing, even if in their hearts they know it's a good system.

Politics is no doubt dirty but it shouldn't be negative nor destructive to the nation. Alas, that would be like preaching the Guru Granth Sahib to the Hallelujah Hosanna Hordes, wakakaka.


  1. "Those earning good incomes, especially businessmen and professionals, might not be in favour of doing away with GST, as the new taxation system encourages them to work harder and earn more."

    hmmm anyone understand wat tis stupid talking abt?

    1. Through lower income tax.

    2. govt didnt tax the poor, does tis make them work harder?

  2. Since nostro piggy thinks that gst is fat superior, i propose nostro pig to pay 100%gst.

    Nostrodamus pig. Where the fuck you are? Kukuciao disappeared liao

    1. Since when did I say I support GST?

      Are you reading and smoking pot at the same time?

    2. Sure you dont support gst, you can always swear by cuttting chicken head

  3. Those who oppose for the sake of opposing knows that when the shit eventually hits the fan under their rule, they can always count on the "Ini salahan BNUMNONajibHadi" card for 10 or even 20 years from now.

  4. Who likes to decide and pay whether GST or SST is not my problem.

    I don't want GST and SST and I think those who choose either are nuts.

    The country is rich enough to do away with both GST and SST if only it stops corruption, wastages, cronism, APs, pilfering, thieving, robbery, grants and bailing out Govt. firms.

    1. Really? Do elaborate on why Saudi with their vaster oil resources and less mouths to feed, decided to implement VAT at 5% with NO exemptions like ours.

      Depending solely on finite natural resources can only sustain when you control the prices of that resource. If you can't do that with certainty, then you're playing Russian roulette with your opponent holding the loaded gun towards you.

      Best method is no taxes, but also no income. Everyone gets food coupons.

    2. Ha ha! Saudi is a good example ler, similar character, they have been born like that, only want to take, take, take never give, money where got enough one.

      Look at Brunei, go into an entertainment centre to enjoy everything free woh, no road tax and even no need to pay income tax ler! Why they can do it?

    3. Of cause entertainment in Brunei is free, because there is NO entertainment! Why need to pay for something that doesn't exist. And road tax is insignificant lar, only RM90 for a whole year. That's only 25sen per day.

      What can you get for 25sen nowadays?

  5. Well, in democratic politics of one person, one vote, the majority, most of whom are in the B40 determine who wins and if the majority who are of lower income feel that the GST burdens them, rightly or wrongly, they may well vote for the party which promises to abolish GST.

    Populist politics is very much about appealing to the sentiments of a target group, not about pleasing everyone and usually the target group is the majority, who welcome a few crumbs promised their way, even though these promises may not be honoured by politicians once elected.

  6. "The country is rich enough to do away with both GST and SST if only it stops corruption, wastages, cronism, APs, pilfering, thieving, robbery, grants and bailing out Govt. firms."

    If that be so, I suppose Singapore, the U.K., Australia, New Zealand, Canada and other "squeaky clean" countries would have abolished GST or VAT but they introduced GST/VAT long before Malaysia.

    Anyway, let us see the results of GE14.

  7. High taxes, whether based on income, consumption or a combination of both, must be balanced by responsible governance on their spending. Many rich people (I am told by friends in Europe) don’t mind the high taxes, because their governments provide many services to their citizenry. Example in Denmark education (including university) is free, social service standard is high, their elderly and unemployed are taken care of healthcare is heavily subsidised etc. The perception (some say reality) in Malaysia is the government wants to increase the collection of taxes but does not show good governance in spending that money.

    1. Those perceptions are from those that find little benefit from it.

      They're the ones whose income is above BR1M threshold, therefore find BR1M no benefit to them. They're the ones who prefer using cars to travel instead of using public transports, therefore they find no benefit to them. But is it Government's fault for their perception or do they ignore the benefits these bring to the lower income group? If they can self-sufficient, why not spare a coin to those who needs it instead of griping about it?

    2. That's what one calls arguing taxation for the sake of taxation WITHOUT looking at the big picture.

      Especially, those hp6 know nothing disguised as lecturer & politically correct blogger.

    3. U see these cheebyes put up pictures of other countries charging higher gst implies najib will surely increase gst rate after elction if he wins. I will bet with one cock hair la