Malaysiakini - educate the people about GST...

What is Goods and Services Tax?

How will it affect the ordinary person in the street?

When they start charging/increasing GST, will it not also mean an increase of cost to the normal consumer? Oh yes, it is ultimately the people in Malaysia that will suffer. Cost of living will surely increase again....and for the rich and upper-middle class, it will not be a problem. But surely, the poor and the lower middle class will feel the pinch - as their spending increase.

The people need more education about these, and alternative media like Malaysiakini can lead the way in providing Malaysians with a basic understanding, and an exposure to the different viewpoints on the subject.

Pakatan Rakyat has set up a task force on this GST - and I hope that they do not just 'scrutinize' but launch into a public education awareness campaign on GST and its implication to Malaysia, and more importantly the ordinary person in Malaysia. Should be protest the new UMNO-led BN government GST policy? Why? If yes, let us launch a public campaign on this. 

Pakatan Rakyat has reacted quickly to form a task force that will scrutinise the Goods and Services Tax (GST) policy, which is expected to come into force in 18 months.

The Anti-GST task force will have representation from all three parties in Pakatan, said Machang parliamentarian Saifuddin Nasution at the Parliament lobby today.

It will study the proposed Bill and related enactments, formulate an action plan to cover short- and long-term implications, and go on a road-show to discuss the issue with communities at the grassroots.

Apart from Saifuddin, parliamentarians Azan Ismail (Indera Mahkota) and William Leong (Selayang) will represent PKR in the task force.

The PAS team comprises Dzulkefly Ahmad (Kuala Selangor), Kamaruddin Jaafar (Tumpat) and Dr Siti Mariah Mahmud (Kota Raja).

The DAP representatives are Tony Pua (Petaling Jaya Utara), Liew Ching Tong (Bukit Bendera) and Charles Santiago (Klang).

Last week, Second Finance Minister Ahmad Husni Mohamad Hanadzlah said the GST Bill will be tabled during the ongoing sitting of Parliament, with plans to push it through in 2011. The objective is to increase tax revenue to RM1 billion.

 

This will replace the sales tax and service tax, currently at five and 10 percent respectively.

'Burden on consumers'

Dzulkefly described the proposal as regressive, as it will have an impact on every Malaysian but those in lower income groups in particular.

"We understand the government will earn RM1 billion. But we think that, based on the current mechanism, the government is getting about RM11 billion," he said.

"It is a crucial matter that needs to be addressed and we have to determine how it is will affect the people. It is not just a political issue, it will also affect the people's quality of life which is already burdened by the lack of subsidies."

Pua similarly said pressure would increase on consumers if the GST is implemented.

Claiming that the government is resorting to the move because it "has no money left", he said Pakatan will make every effort to challenge its implementation.

"The people are being victimised. They should not be burdened with the debts of the government," he said.

Santiago indicated that the 4 percent tax could merely be "bait" and that he foresees the quantum being increased later, just as Singapore did when it implemented the GST. - Malaysiakini, 3/12/2009, GST in bull's eye as Pakatan takes aim