We are told that the government is introducing a Goods and Services Tax (GST) to broaden its tax base. Low-income Malaysians and migrant workers will soon have to pay this indirect form of taxation on consumption whereas previously they were exempted from tax.
Ordinary Malaysians are feeling the pinch as the government tries to narrow its yawning fiscal deficit.
One wonders what these low-income folks will make of Najib’s announcement of the immediate abolition of import duty on all golf buggies. The cost of a golf buggy will now drop to RM23,000 from RM34,000. No doubt they will be comforted to know that green trimmers and lawnmowers will now be cheaper as well.
The move is expected to benefit some 200 golf courses in the country. What a caring government.
While low-income folks will soon have to pay GST, corporations and better off Malaysians could soon end up paying lower direct taxes (corporate and income tax). No prizes for predicting the impact this will have on income disparities.
People first, performance now. It’s just par for the course.