For the coming budget, I hope the government will consider the following proposals for reducing cost of living whilst also helping the environment.
1) Tax on parcel delivery.
Impose a tax of RM2 for every parcel delivered by e-commerce distant sales covering business-to-consumer sales. This should be applicable to all businesses whether operating locally or abroad and having distance selling turnover exceeding RM1 Million annually.
The cost will be added to the order of the consumer and is paid by the business to the tax authorities. It should not be imposed on business-to- business sales or food delivery.
Currently there is a major problem of some consumers buying online products impulsively and frivolously causing financial difficulties. There is also the problem of plastic packaging, tape and boxes used in the packaging resulting in proper disposal and environmental issues.
Over-consumption which causes unsustainable use of resources can be curtailed when buying is reduced.
The presence of e-commerce and parcel delivery has negatively affected small brick-mortar shops in local communities. If the amount of e-commerce for clothing, electronic equipment, stationary, shoes, books, etc., is reduced, then small business which can generate a bigger multiplier effect on local communities stand a better chance of continuance.
2) Tax relief on unused quota of Budi Madani
Provide a tax relief of 20 sen per liter of the unused fuel quota of Budi Madani in each taxpayer’s annual income tax return.
The amount of unused quota per annum can be easily worked out since the remaining monthly quota is advised at each fill-up.
This will encourage vehicle owners to cut out unnecessary journeys helping reduce greenhouse gas emissions. Use of public transport can be boosted too.
The government saves too by not having to subsidize more unused quota.
3) Free public transport.
Malaysians under 24 and those over 60 years should be entitled to free public transport.
As our young workforce struggles with low starting salaries, increased cost of living and high cost of owning and maintaining a vehicle, free public transport will be a boon. It may also encourage them to continue use of public transport in later years and help lessen air pollution and our nation’s reliance and payment of imported fossil fuel.
Seniors are a growing demographic and many struggle with low savings and increased cost of living and health costs. With free public transport, an important part of mobility, costs, and social interaction can be enhanced and make healthy active aging a better possibility.
The above proposals have a new revenue collection base of tax on parcel delivery which can be used to offset the expenditure of tax relief on unused fuel quota and free public transport.
They provide cost savings and improve quality of life for every person. The returns can be manifold financially and environmentally not just for the present generation but for future generations as well.
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