SST vs GST: A false debate


It was not so long ago that cartoonist Zunar used to take the mickey out of former Prime Najib Razak and his Goods and Services Tax.

But in recent days, some politicians and analysts have floated the idea of restoring the unpopular GST, perhaps with a reduction in rate from 6% to 3%. They argue this would be more effective in widening the tax base.

But the government maintains that the Sales and Service Tax, which replaced the GST last year, would remain – and it even expects SST revenue to surpass the past GST collection.

Many seem to have forgotten how deeply unpopular the GST was. The GST, introduced in 2015, was so hated, it helped boot out Najib. Many dislike the GST and, to a lesser extent, the SST as these taxes hurt their pockets everyday. Both these consumption taxes are regressive taxes which disproportionately hurt the lower income groups – and to a less extent the middle class – the hardest. Full article on Aliran website


Please help to support this blog if you can.

Read the commenting guidlelines for this blog.
Notify of

Most Voted
Newest Oldest
Inline Feedbacks
View all comments
Kent Shuang

Instead of asking the B40 to improve their skill sets in order to command better salary, the government should not succumb to calls for higher minimum wage.

Without productivity improvements, REAL Wages will not increase.

MTUC please learn from Singapore’s NTUC!


As typical in “free market” countries, while they engage in such double-talk, excuses and claims of ignorance, they engage in these:
– Keep bringing in foreign labour — refugees from war, disasters, imperial dictators or incompetence — to depress wages.
– Fail to provide a safe environment including protective gear.
– Keep overloading employees.
– Cheat employees of wages and benefits; the vast scam begins with debts foreigners incur in their home countries and extortion here.

As for labour planning, just consider the vast mismatches in the medical sector alone.


The Kangkung professor, is a VC of University Malaya, which is a multi racial institution supported and paid for with tax payers funds from a multi racial population. He has no business attending a racial/racist gatherings and showing his racist side. He should be an example of tolerance and fairness esp since he heads this higher institution of learning. He is a blot and a disgrace to the Uni and its student population whom he is supposed to lead by example. He should be severally reprimanded and better still be sacked.


A new cartoon by Zunar on Aliran:
comment image


Anyone excited over the 2020 budget?

To me it is the budget for PH to win the support of civil servants with goodies?


Budget 2020: Finance Minister, Lim Guan Eng has announced a digital stimulus to promote the adoption of eWallet in Malaysia. All Malaysians aged 18 years and above will receive a one-off payment of RM30 via their eWallet.

To redeem this RM30 stimulus, you will need to have a verified eWallet account from selected providers. This one-off payment can be redeemed and utilised for a period of two months starting 1st January to 29th February 2020. The Government hopes that this incentive will speed up the transformation towards digital payments in the community as well as acceptance by small businesses.


Why still give one-off bonus payment to those already penchen?

Already receive penchen, those retired civil servants must not ask for too much!


Already get pension so no need for extra one-off bonus every year.

If continue to pay such bonuses, little is left for development!


Budget 2020: Government allocates RM100mil to Penang for the development of a cable car up Penang Hill


So, the legacy of Niao Kong will come to life after all!
The next to realise could be the sea tunnel, Cosmopolitan Penang forever-expensive properties (foreigners could now buy condos capped at Rm600K lo!), 3-fantasy islands, etc.


Don’t forget: many small businesses closed down because they found the system (incl. computers) too complicated or offering no refunds. Also, we don’t know how many more staff the gomen employed and how much it spent just to set up, launch and run GST. The end result was a mess. We still do not know where the money went; the current and preceding gomen have differing versions of that story. Unlike people who steal food to feed their children, no one has been charged for diverting collections or delaying refunds.


Programmers of GST accounting softwares already multi-millionaires?
GST 2.0 will make even more multi-billionaires so the PH gomen could tax 30% the programmers (who won’t feel the pinch) to replenish the bled national coffer!


Millions of ringgit wasted on GST software, says tax expert

Businesses lost millions of ringgit in tax software that was rendered useless with the abolition of the goods and services tax (GST).


Example of GST Bleeding: A consumer buys a product taxed by GST which has been distributed from a source of manufacturing / import & thro’ a number of distributors / retailers. Imagine each distributor or retailer adds a further 6% GST to the above product down the distribution channel, wouldn’t the price appreciate far above & beyond the 6% GST which should be taxed ONCE the minute it leaves the first level of distribution channel? And manufacturers, importers, retailers, distributors could claim a tax refund but not a bled-to-the-bone-marrow consumer! What the hell is this GST to resurrect for? To… Read more »


wow…what a brilliant idea..we should emulate North Korea then…instead of shared wealth we will have shared, entrepreneur and talent will take their money and flee the country, private investment will cease and business drop, unemployment soar…nice
i like the Green fighter’s agenda to fight for the jungles instead of the people..their mission of making everybody poor will go down well with the people..i hope they stand for next election ..all the … will vote you surely..