Way back in 2015, the government introduced GST. There was a lot of opposition from the people but the government went ahead. As a result, the prices of many goods and services skyrocketed, putting a strain on the people. The ones who suffered most were the poor and the middle class. For the rich, it was alright as they had the financial capacity. When the Pakatan Harapan government took over in 2018, GST was abolished and replaced with the Sales and Service Tax or SST. But now, the present PM has remarked that GST may be introduced again mainly to replenish the government’s finance. He also said that there were not many ways to source money.
Do you think the government is making the right decision? Many don’t think so. The middle class and the poor are still having a difficult life due to, the aftermath of Covid-19. So, why are they being further punished? The government must be out of ideas. What do they mean that they don’t have other alternatives. They have to be intelligent and logical. Or, the ministers don’t have higher-order thinking skills. In the feudal days, the government introduced all kinds of taxes to raise funds for the government. At that time, many did not have an education so taxing people was the wisest choice. But, today we are living in another era so the ministers must be creative to find other reasonable ways to raise funds. If you look at Singapore there is a GST and for the people, it is fine because they are well enumerated. Lately, there was news that even garbage collectors earn about RM12,000 and officers earn about RM30,000. Ha! Ha! Here in Malaysia, even new doctors earn about RM3000. This is peanuts. The reason is that our leaders haven’t raised the standard of living even after about 60 years of Independence as compared to Singapore. If we look at Singapore’s ministers, most of them have excellent credentials and that’s why they are far ahead.
Many economists are also not in favour of reintroducing GST. Many businesses will eventually evolve to a new perspective which will not be conducive to the poor and needy. They say that instead of taxing everyone the government should stop the leakage of funds and the stealing of government money. If the government can enforce this a lot of money can be saved. Transparency International 2021, Corruption Perception Index has ranked Malaysia at 62nd place out of 180 countries. This indicates that a lot of money is stolen from the government’s coffers. Another indication of money being stolen is the number of corruption cases in courts involving high ranking government officials and politicians. In some cases, billions are involved. Even the Auditor General’s report has indicated that a lot of money has been leaked to unscrupulous people. The Auditor-General has said that non-compliance of federal ministries and departments with financial management has led to issues involving regular payments, loss of public funds and wastage amounting to RM620 million. So, this is why the government wants more money. Another interesting story is the Sapura mismanagement issue. I believe they have lost billions and the government is thinking about whether to bail it out. Why must the government bail it out using public funds? They must get it from those who mismanaged it. It was reported that the CEO was paid about RM983 million in various payments between 2009 and 2018. Is this fair? Go get money from him instead of taxing the rakyat.
The government should tax the rich and not the poor. In the last three decades, Malaysia has experienced excellent economic growth. This should have brought a higher standard of living and prosperity to the top 20% of Malaysians who have been branded as super-rich. Look at what the rich enjoy; international standard shopping centres, high-end condominiums, elite clubs as well as expensive international schools. For them, going to London is equivalent to a kampong family from Kelantan visiting Kuala Lumpur. Some even buy a shirt for RM5500. So, why tax the poor? Robin Hood has set an example which is very logical. Take from the rich and give to the poor. No one will complain. I believe many of the rich have not earned the money through sheer hard work as the late Tan Sri Lim Goh Tong. Many of the rich have earned money through political, government and crony connections. It’s a matter of being in the right place at the right time. But, don’t take from the rich and put it the cash into your pockets. This is what is happening and many today do not want to donate money.
The government should not think about introducing GST at all. About 80% of Malaysians today are facing enough financial problems. Many can’t even have proper meals. Many have withdrawn their EPF twice to buffer their finance. The farmers, fishermen and self-occupied are among those really having a difficult time. Coupled with an increase in prices of many goods after the Covid-19 pandemic these people are really in limbo. The government in return must find ways to improve the standard of living of Malaysians. If they earn enough then it will be fine to tax them. So, for now, no GST, please.
Palaniappan Karuppan is a content writer under Headliner by Newswav, a programme where content creators get to tell their unique stories through articles and at the same time monetize their content within the Newswav app.
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