Govt puts off GST Bill – for now

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It’s not surprising that the government has decided to put off the Goods and Services Tax (GST) for now.

While the NGOs might claim preliminary victory (they had planned a protest for Monday, when Parliament resumes) and some might think that the government has listened to the people’s concern, I believe it was the Federation of Malaysian Manufacturer’s objection that probably saved the day.

Five days ago on Tuesday, the FMM’s task force on GST recommended that the tax be deferred until Malaysia was ready (when average income was higher and income disparity lower).

We shouldn’t be too thankful to the FMM though. They very “kindly” suggested that the government consider a Retail Sales Tax instead of a GST – while the corporations continue to enjoy ever-lower tax rates. Gee, thanks!

As this government often puts business interests ahead of people’s, we shoudn’t be surprised that the government is now listening to the FMM. After all, if the government really had the people’s interest at heart, it would not have even contemplated GST – not when the vast majority of Malaysians do not earn enough to be eligible to pay income tax.

Why was the FMM against the idea? For one thing, it would have required a great deal of education, work and expense to prepare their member firms for the new tax regime.

Just last week, I was telling an accountant friend of mine that I don’t think that the government has the machinery and the qualified human resources in place to implement the GST. Neither had it done much ground work. If it had gone full steam ahead with the GST, then there was a great danger that 1Malaysia would be reduced to 1Big Mess with leakages galore.

Moreover, the GST was not going to be politically popular with Umno’s rural base, many of whom would be low-income workers (such as farmers) who would be heaviest hit by the GST.

Most people instinctively know the GST is a regressive tax, especially in the Malaysian context. (Some have dubbed it “Go Squeeze Them”.) This is especially true when you consider that the majority of Malaysians do not currently pay income tax – in which case, the standard methods of mitigating the effect of the GST on the low-income group  (i.e. income tax credits and slashing income tax rates for the bottom bands of income) are not available.

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veryupset

Who was the smart “alec” that suggested this GST thingy in the 1st place??
Why had it implemented when “our brainy” people said it’s not possible to be done…?

(Our Brainy = Our local rakyat not in goverment services)

Even if wanna do it, make sure we ALL earn damn high income lah….!!! STOP giving tax payers $$$ to this link & that link company. These companies “HAVE” failed & failed & yet still wanna pump it…!!

All these have given the wrong impression to the rakyat.
Sack Apco as the pr-ing not working dey….!!!!!!!

FenceSitter

What PR has done so far in and outside the parliament will never be known, esp. for if it is for the good of the rakyat. No, not when bn controls the msm.

Gerakan K

Hello don’t assume too much. They can publish their good work (if any) in blogs.

ericind

Hai,Gerakan k,pergi … dgn parti BN/ umno yg kamu sayang tu.paham??

Gerakan K

Biar boleh diajar, terpelajar dan tidak kurang ajar.

Jerry

Gerakan K,

My vote is for Pakatan in the next G.E. as it has always been.

Thanks Pakatan Rakyat for influencing the govt to delay GST.

Gerakan K

Tell me what PR has done so far regarding to the delay of GST

O

Gerakan K, Bro, had it not been for the efforts of the NGOs and Pakatan Rakyat, UMNO Baru would not care a damn about the feelings of the Rakyat! We have to thank the PR/NGOs for the planned protest 15/3/10 at Parliament! The UMNO guys has no alternative but to call off the debate and pending implementation of GST. They can easily manipulate and cheat the kampung folks, but not the urban Malays. They were worried the protest would highlight the evil of the GST to those in the rural areas, now, you just watch. If they can win win… Read more »

tan, tanjong bungah

Hi everyone, When implemented GST would net the govt some RM8 billions and would increase the tax collected. The increase in tax comes from taxpayers, which now include those rakyat who had formerly not have to pay income tax due to their lower income. Don’t be taken in by the Federal govt spin that as GST would not be imposed on essential items, like certain food items, it would not affect people in the lower income group. If so, then how come the govt is envisaged to be able to collect more taxes with GST, while at the same time… Read more »

GST Man

Attended a GST seminar lately. Apparently only certain people are excited. They are IRB, Royal Custom, Big tax firms, middle size tax firms and some “con”sultants. Yes, Malaysia is not ready for GST. As an accountant, I admit Malaysia is not ready for GST. Not so much about implementation but because the lower income people will suffer.

Gerakan K

O,

stand up now, listen and remember nodding your head for agreement:

Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin tells leaders to emulate my PM Najib
(http://www.themalaysianinsider.com/index.php/malaysia/56268-emulate-najib-meet-people-agong-tells-leaders)

O

Gerakan K, Thank you for your information. I saw the above captioned in Malaysianinsider, but, I did not bother to read the article! Remember, what the Terengganu BN called our beloved Agong, when he refused to give his nod to Harun Jusoh to be the CM? Can you remember? Please tell me. Honestly, bro, I will never vote UMNO/BN ever, because I just cannot allow myself to be haunted by voting in an evil. No, it is just too much, I would rather not go out to vote or spoil my vote. If PAS really goes ahead and pursue unity… Read more »

Gerakan K

For a 2 party system to work, both sides have their supporters and votes.

Secondly, I think with this support from our Agong, most Malay will swing their support back to BN.

I think election is coming very soon.

O

Gerakan K, Bro, at the cost of repetition, can you tell me who the speechwriter was? Read RPK’s explanation, it is probably the speechwriter from PM’s office! And one is a close associate! He does not know that I am so pro PR, as our family ties runs into hundreds of years!… I can only tell you bro, the UMNO governemnt jst does not know what to do, trouble brewing in almost every states, now Sabah and Sarawak. They have deferred the GST bill for second reading, postponed the bill on withdrawing subsidy on petrol and so many others. Flip… Read more »

SamG

Take 2 steps back… First the BN GOvt pulls back from the cut in petrol subsidy. Next the back off from GST. What is happening? Something is not right in BN BIG TIME.
BN always had the bulldoze mentality. Now they are under threat. The enemy is most unpredictable when threatened big time…

Ken

Gerakan K’s response is like giving the noble peace prize to a dictator who wants to bomb civilians but then decides not to.

O

Gerakan K,

Syabas Lee Chong Wei, Syabas Pulau Pinang! Syabas Pakatan Rakyat Malaysia! Penang makes Malaysia proud again!

Let us hope the UMNO/BN politicians do not wreck this man’s career, just like they did to Mohd Hafiz Hashim! (Seems like) anything UMNO/BN touches, it corrupts!

UMNO/BN please let this man continue his brilliant career and do not corrupt him! He has a few good years ahead of him! Tolonglah UMNO/BN, please butt off!

LC Teh

Know what they say about a dead bee? The sting in its tail can still cause damage. Just don’t touch it. Problem is, this ‘bee’ ain’t dead. It’ll be back to sting us.

LBJ

I just cannot believe this K fella. Just because the BN govt delay the GST because of its sheer incompetence, it is a cause to vote BN. I am speechless.

Jong

Why talk GST to burden the people when the whole government machinery is at breaking point, sucks! We have idiots in high office(thanks Justice NH Chan for calling a spade, a spade!) and blatant corruption in every government insitution. The rotten fishhead needs replacing first.

limko1

Gerakan K,

You may as well thank a robber who decided to flee without robbing you on seeing policemen approaching other than giving you a scare …

wandererAUS

Conscience pricking them or to grill the “financially disadvantaged” further?
This method I called it, DEEP SEA NET FISHING, everything get caught but, unfortunately, very few sharks and majority small fishes!!!
Almost like robbing Paul and paying Peter…
Anil, looks like you have to go on a banana a day diet meal! hehe

Jerry

Better still take 4 or 5 bananas and water only for breakfast everyday if you are overweight and want to lose weight:

Mist

In the bible God had commanded Adam and Eve not to eat from the tree of knowledge. If they eat of the fruit they will know good and bad and will lose their everlasting life. Interestingly knowledge and knowing good and bad introduced imperfection or sin into mankind. One would have thought that if we know what is good and bad that would be a good thing. Intellectually we would have thought that the God of the bible is really a dumb God. When we lack discernment and wisdom we would form such conclusion but in truth we are the… Read more »

Mist

In the bible God had commanded Adam and Eve not to eat from the tree of knowledge. If they eat of the fruit they will know good and bad and will lose their everlasting life. Interestingly knowledge and knowing good and bad introduced imperfection or sin into mankind. One would have thought that if we know what is good and bad that would be a good thing. Intellectually we would have thought that the God of the bible is really a dumb God. When we lack discernment and wisdom we would form such conclusion but in truth we are the… Read more »

O

Gerakan K, You mentioned that you are against GST, and asked what you can do about it, right? What you should do now is to join the NGOs and Pakatan Rakyat to pressure the Government from implementing the above! If they really implement it with a start up at 4%, what guarantee is there that they will not increase it as and when they need the money? Coupled with the withdrawal of subsidy on fuel, all prices of consumer goods will increase significantly, and who will suffer the most? Again, it is the kampung folks and the poor! Inilah “Rakyat… Read more »

O

While FMM has played a small part in this “victory”, businessmen being businessmen, their ultimate aims are to make as much monies as possible. Who cares about the Rakyat? In this connection, heartfelt thanks to all NGOs and Pakatan Rakyat! Without the pressure of Pakatan Rakyat and the NGOs the UMNO Baru regime would have bulldozed its way to implement the GST. The planned protest tomorrow in a way make UMNO Baru put off the plan as they do not want those kampung folks and those in East Malaysia to understand the severity of the GST. They may start with… Read more »

Gerakan K

Thankyou !!!

My vote for you BN.

Ahmad Syafiq

Sad mentality wei. GST shouldn’t have even been suggested in the 1st place.

It’s like the gov’t wants to carry out a wasteful mega project, and then decide to withdraw it last minute. And you decide to vote for the gov’t that screws up.

Come on man, when these type of decisions happen, YOU shouldn’t vote in the next GE. Let me and the others vote for ya. How’s that? You don’t have to go out voting, we’ll do the voting for ya. Yes?