Posts Tagged ‘GST


Why not reduce GST instead of increasing BR1M?

BR1M has been increased, so why is GST not being reduced?

LETTER | Caretaker prime minister Najib Abdul Razak had announced an addition of new categories and an increase of the 1Malaysia People’s Aid (BR1M) in the BN manifesto to help the people face their rising living costs.

However, the question of the Goods and Services Tax (GST) which has been directly affecting the people, did not become a policy focus in the manifesto.

As we know, the GST collection in 2017 was RM44 billion. The total allocation for the approved BR1M application in 2018 is RM6.12 billion.

From that, think-tank Political Studies for Change (KPRU) found that the allocation for BR1M disbursement alone is already 13.9 percent of the GST collection!

Although there is no problem for the collected GST revenue to be returned to the people’s usage by giving BR1M, this only aids certain groups of people, so why is the BN government not reducing the GST in order to benefit most ordinary people?

Based on the GST collection in 2017, if the GST rate is being reduced by one percent, the GST collection will be reduced by RM7.3 billion. This amount of money is actually more or less the same as the BR1M allocation for 2018.

Furthermore, the BN government’s intention to add new categories and raise the BR1M will raise the allocation. According to KPRU calculations, the total BR1M allocation after adding new categories and increasing BR1M will hit RM11.7 billion. This amount is the same as reducing the GST by 1.5 percent!

Besides that, caretaker deputy prime minister Ahmad Zahid Hamidi also said that the international oil price has increased to US$69 per barrel, as compared with the assumed US$59 per barrel when the budget was being tabled before this.

This means that the federal government has gained a surplus of revenue due to the increase of crude oil prices. Since the source of revenue from petroleum has been increased, the GST which contributes to the national source of revenue should be reduced in order to lessen the burden of the people.

Therefore, in our opinion, it is strange that the BN government attempts to help the people in handling their cost of living by increasing BR1M but not reducing the GST, which has greatly impacted most ordinary people’s livelihoods since its implementation.

BR1M has been increased, so why is GST not being reduced?
13 April 2018 – malaysiakini


GST is really not necessary for Malaysia – Dr M


1. Najib’s apologists have tried very hard to justify the GST. The Government collects more than forty-billion Ringgit from GST last year. And more will be collected in the coming years.

2. Unlike income tax, GST is not based on profits. Even when no profits are made or losses incurred the 6% GST must still be paid. It adds to the cost of doing business.

3. The G.T is paid up front. Naturally businessmen will pass on the tax to the consumers. The price of goods and services will have to be raised and this results in inflation. The cost of living would go up. And it has.

4. Effectively the GST is paid by everyone. Even a baby consuming milk would be taxed.

5. Some items might be taxed twice as GST is collected with each transaction. The Government promises to reimburse the tax paid if it is shown that the tax has been paid twice. But this is a slow process and may take months or years. The rebate will not be passed on to the consumers.

6. The reasons why Najib’s Government does not have enough money is because of his abuses in the management of Government funds to gain popularity for himself.

7. BR1M for example costs the Government seven billion Ringgit or more a year. Then there are other handouts such as RM300 for fishermen, RM800 for party members who are chairman of JKKK (Village Development Committee), thousands for Hajj Pilgrims, pensions for retirees not eligible for pension, etc.

8. The emoluments for civil servants have been revised frequently, sometimes by 25%. In addition the number of Government employees has increased to 1,600,000 from the 1 million in the 1980s. This will cause the salary bill to double or more.

9. The increase in minimum wage increases the salaries of all workers at all levels in the Government as well as the private sector. From about RM700, minimum wage has increased to RM1,200 – almost double. When the minimum wage is increased those already receiving more than the new minimum must be increased also. This is in order to sustain parity between different levels or ranks of the employees.

10. Najib also sets up numerous extra Governmental organisations. PEMANDU is a good example where huge salaries, well above the Government’s pay scale are paid to the heads and the staff. New posts are also created in and outside the Government which do not conform to Government’s salary scale. How much they are paid is not known.

11. All these people who financially benefit from Najib’s largesse may be happy. But actually, the increases in their income benefits them very little. This is because the increases of their pay invariably cause a rise in the cost of living. In other words, the increase in pay does not increase the purchasing power.

12. It is not how much one is paid that is important. What really matters is one’s purchasing power. When cost of goods and services increases the extra income that one gets is quite meaningless.

13. We all know of countries where the pay is in millions but they are all poor because of the depreciation in purchasing power of their money. A country can fail and become bankrupt where workers are paid thousands or even millions every month.

14. During Najib’s premiership crude oil sometimes sold at USD130 per barrel. Petronas paid billions to the Government when petroleum prices were high. Now oil prices have come down to USD50 per barrel. Even then it is higher than during the 80s and 90s when oil was selling at less than USD30 per barrel. So at USD50 Government oil profits and taxes would still be much more than in those years of low oil price.

15. The same goes for profits made by banks and large businesses. It is not unusual to see them make billions of Ringgit in profits p.a. And accordingly the Government must receive much more money by way of petroleum profits and taxes and corporate taxes even today.

16. For all these reasons the Government of today must collect more than was collected in the 80s and 90s. But the Government claims it had to introduce the G.S.T because it is short of funds.

17. The truth is that Najib’s regime is abusing Government revenue by spending huge sums to get popular support for Najib.

18. One of the highest contributor to the shortage of fund is the loans taken by Najib. There is a ceiling to the loans that the Government can raise. But Najib resorted to borrowing by a Government company – the 1MDB, which is not limited by Government rules.

19. Although 1MDB is not a part of the Government, the fact is that it is 100% owned by the Government. This means that if the loan is not serviced or repaid, the Government will have to pay the loans and interest.

20. And so when 1MDB lost money, Government had to take over the company and pay the interest and the loan.

21. It is the same with the 55 billion Ringgit for the east coast Railway. Altogether it is estimated that Najib has borrowed almost 200 billion Ringgit. Some of the loans carry interest rates of 6%.

22. Assuming the average interest rate is 3%, the Government will have to pay 6 billion yearly in interest alone. Paying the principal will cost more billions. It may take two generations to settle all the loans.

23. For servicing and repayment of the loans Najib has resorted to buying Government land at a low price, revaluing it and selling the land at inflated prices.

24. For land at TRX (Tun Razak Exchange) 1MDB paid only RM60/- psf to the Government. It was sold at RM3,500/- psf to Tabung Haji. So the savings of poor people for performing the Hajj have given 1MDB very high returns.

25. The Airforce base at Sungei Besi was also sold by Najib, as were land in Melaka and Pahang.

26. Still the money raised through these land sales will not be able to service and repay loans. So money from normal Government revenue must be used. There will not be enough money in the Consolidated Fund. The next source would be to tax the people. And so the GST.

27. It is true that KWSP, with billions of Ringgit, will have difficulty in investing within the country. It should invest in good foreign companies. But the decision to invest in any company should be based on business considerations. It should not be influenced by political imperatives.

28. But clearly the KWSP is being forced to invest in the United States to please Trump and Najib’s need to have pictures of himself with Trump to show that what the American Department of Justice says about him is not true. But the DoJ has not stopped the investigation on Najib’s involvement in money laundering in the U.S.

29. If the Government wants to reduce the huge deficits every year, what is needed is to get rid of the belief that money can buy popularity. It cannot. It has only made the Government and Najib more unpopular.

30. All those things which increase the cost of governance should be dropped. The 1MDB money can be recovered as we know where the money is. Najib will not do this as it means surrendering all the money he has taken. Rosmah Mansor, Jho Low and Riza Aziz and others who has got the stolen money must also surrender. Najib cannot get the money frozen by the Governments of Singapore, the U.S. and Switzerland. There must also be quite a lot in the U.K. as well. The frozen money will not be returned until Najib who stole it is no longer the head of the Malaysian Government.

31. BR1M should be converted to unemployment benefit for the hardcore poor. Most of the present recipients can afford to do without BR1M. The actual amount of support for hard core poor should be raised and paid every month, not once a year.

32. The waters surrounding Malaysia should be patrolled by the Malaysian police, the Maritime Agency and the Malaysian Navy to prevent foreign fishermen from intruding into our territorial waters. With this the Malaysian fishermen would catch more fish and earn higher incomes. The RM300 allowance can be stopped.

33. Various other allowances to all and sundry should be revised or stopped.

34. Pay increases for Government servants should not be accompanied with inflation. There are ways of doing this.

35. If the Government is prudent in the management of Government funds, there should be no shortages. The need for new taxes can be avoided.

36. The GST is really not necessary for Malaysia. It can be abolished without affecting the revenues of the Government and without creating a burden for the people.

18 Oct 2017 –


Harapan vows to scrap GST within 100 days of taking power

Harapan vows to scrap GST within 100 days of taking power

Pakatan Harapan today released its plans for the first 100 days of taking over Putrajaya.

Reading the coalition’s joint statement, newly-appointed Harapan chairperson Dr Mahathir Mohamad announced that it will abolish the implementation of the Goods and Services Tax (GST), among others.

Below is the list of things it plans to do:

  • Stabilise the price of petrol
  • Focus on efforts to alleviate the rakyat’s burdens
  • Start a thorough reform process of key institutions
  • Fight corruption to its roots
  • Form a royal commission of inquiry (RCI) into the 1MDB scandal
  • Rehabilitate the Federal Land Development Authority (Felda)

Announcing this alongside its leadership line-up, Mahathir said the coalition is committed to a common goal of toppling the Najib Abdul Razak administration.

The announcement was made at a press conference past midnight on Friday at PKR’s headquarters in Petaling Jaya.

Two-term limit for PM

The partner parties DAP, PKR, Parti Amanah Negara and Parti Pribumi Bersatu Malaysia will implement a two-term limit for the prime minister’s post.

They also agree to “cancel and correct” any breach of laws by the current government, which impact the people’s interest.

“This includes reinstating public funds which were lost through the 1MDB mega scandal,” the parties said in a declaration read out by Mahathir.

They also agreed to work towards releasing all political prisoners and drop all charges against them, as well as reforming key laws and institutions to prevent abuse of power.

Harapan vows to scrap GST within 100 days of taking power
14 July 2917 – malaysiakini


Clown minister suggests two jobs to cope with rising costs

Ahmad Maslan takes a beating for ‘work two jobs’ remark

Opposition lawmakers and a social activist take a swipe at the Umno deputy minister, with Tony Pua suggesting the people sell nasi lemak and Art Harun saying the PM himself holds three jobs.

PETALING JAYA: Deputy International Trade and Industry Minister Ahmad Maslan’s “work two jobs to cope with rising costs of living” remark continues to receive flak from many quarters with a social activist and opposition lawmakers taking to social media to give him a good telling off.

Lawyer and social activist Art Harun tweeted: “Another useful advice from amat maslan (sic) – take 2 jobs to overcome rising costs. Yes. Wake up early. Avoid toll road. Makan kangkung (eat kangkung).”

He also took to Facebook to post “Don’t be angry with Mat Maslan for suggesting that we should take 2 jobs to overcome rising costs of living. Even the Prime Minister takes at least 3 jobs. He is the PM. He is the Finance Minister. He is 1MDB’s advisor. Life must be hard for him too.”

MP for Lembah Pantai Nurul Izzah Anwar, in sharing the news report where Ahmad made the remark, said: “menteri tidak merasa, maka mudahlah mengarah” (Minister’s don’t experience it, so it is easy to issue orders).

Petaling Jaya Utara MP Tony Pua said: “And the story continues for Datuk Ahmad Maslan. Yes guys, if you think the cost of living is too high – no worries, just take up 2 jobs. You can sell nasi lemak during weekends, or drive Uber cars in the evening. Rakyat didahulukan! (People first)”

On Sunday, news portal Astro Awani quoted Ahmad as making the call, saying that holding down two jobs was not uncommon as it was done by many around the world.

“I think it’s not wrong (to have two jobs) in Malaysia, though we have regulations, but it is still one way to address the rising cost of living.

“They can work during office hours and still run their online business…As long as they have enough sleep and come to work. They can run their business on weekends,” he was quoted as saying.

Ahmad Maslan takes a beating for ‘work two jobs’ remark
December 28, 2015 – FMT


Is Najib deaf, deluded or in the twilight zone?

He continues to whistle his happy tune while the public fumes at the futility of meaningless and costly events.


Few things are admirable about PM Najib’s leadership of the country. Of the notable qualities of his six-year rule, foremost must be his talent for putting on a grand show to celebrate or herald all manner of government efforts and campaigns, including the loathsome GST.

Despite the brickbats thrown at him for the money spent on all the fanfare and confetti to usher his every announcement, he continues to whistle his happy tune while the public fumes at the futility of these meaningless and costly events. Perhaps the loud whistling allows him to deny hearing complaints about how ill-conceived and thoughtless some of his plans and actions really are. The people can no longer tell if he is just deaf, deluded, out of touch, or in the twilight zone.

He hears only the sweet songs of his cheerleaders, who say that all is well within the enchanted kingdom. They reassure him that the people are happy that all the bad dragons have been locked up or have been overpowered by his mesmerising speeches and everything is as it should be under his incomparable guidance.

The other skill he seems adept at is to overlook his own catastrophic misdeeds without attempting to explain or apologise for how he may have gotten it all so wrong.

Take, for instance, the blunder over 1MDB assets kept in Singapore. What the heck, why even bother answering for only the biggest gaffe in parliamentary history when there are proxies and paid publicists who can better explain an action that some have already labelled a crime? We suppose he could plead schizophrenia, but that would disqualify him from the job. Or the top cop could possibly be so kind as to say no action is necessary because he cooperated by swearing a solemn oath that there were no ill intentions, and then warn the public not to make political capital out of the episode.

His faith in the ability of his public relations team must be tremendous if he is counting on them to erase all memory of what was said to parliament about cash in the Singapore bank. Unfortunately, his publicity agents aren’t elected to the august house or sitting on the board of 1MDB to have any business addressing the federal legislators or the public on the matter.

When he does explain himself, he comes across as woefully inadequate and insincere by making out that the accusations of his detractors are just a plot to discredit him. The whole world can see that is not and cannot be an answer to explain the strange activities of the investment fund. He is implicated not because his detractors hate him and want to see him squirm, though it would give them immense pleasure, to be sure. It is because he is in charge as top regulator of all things financial. He is the Minister of Finance, is he not? And as the Prime Minister, he can open any door or window to let in maximum light without fumbling for any keys or the need to peep through keyholes.

That he is forced to use the argument that he’s been bashed by slanderous elements out to destroy his image and credibility is, for want of a better word, lame. This is not the attitude we expect from the head of a democratic government who must account for his actions and that of his cabinet. It is expected that explaining oneself and one’s actions is a major part of the job of being Prime Minister. He is even accountable for his team. So it won’t do to have others take the heat for the mess that originates from his decision making.

One topic that will remain relevant for some time is the GST. Why do small traders cite GST as the reason their prices go up? Najib’s people seem to be getting themselves into knots dealing with this issue. There’s really a simple explanation, and we give this short tuition to the Najib administration for free.

Even if their businesses are too small to warrant charging GST, the GST charges these petty traders pay for the various components they combine to make their finished goods have pushed their costs up.

Is Najib deaf, deluded or in the twilight zone?
May 26, 2015 – FMT


Putrajaya dragging Malaysia off democratic path with mass arrests, watchdog says

KUALA LUMPUR, May 2 – Putrajaya’s mass arrest of protesters rallying against the Goods and Services Tax (GST) yesterday should trigger alarm internationally over how the country is veering off the democratic path, global rights group Human Rights Watch said today.

Human Rights Watch’s Phil Robertson said the arrests are “nothing short of outrageous”, demanding that the federal government “immediately and unconditionally release all the peaceful May 1st anti-GST protesters”.

“This wave of arrests should raise alarm bells among international friends of Malaysia about just how far the powers that be in Putrajaya are dragging the country off the path of democratic, rights-respecting governance,” the deputy director of the watchdog’s Asia division said in a statement today.

Robertson stressed that authorities should not deem peaceful protest as illegal, stating: “Expressing views and holding a peaceful, public march should not be considered a crime in Malaysia or anywhere else in the world.”

The police reportedly arrested 29 people over the rally for alleged unlawful assembly, among other things, with police also reportedly seizing several “smoke bombs”.

The rally by civil society movement #KitaLawan kicked off shortly after 2.30pm yesterday afternoon from several meeting points and drew a reported crowd of nearly 10,000 participants to the streets of the capital.

There were no report of injuries or casualties arising from the rally, that is said to have progressed peacefully in a march by a sea of thousands of Malaysians clothed in red and black.

After the event, however, police claimed on their official Facebook account that the rally was not fully under control, citing incidents of alleged vandalism and smoke bombs being thrown by the protesters to back up its claim.

The police also said protesters had brought children to the rally – which could be an offence under the Peaceful Assembly Act.

Putrajaya dragging Malaysia off democratic path with mass arrests, watchdog says
May 2, 2015 – MMO


The fables of GST according to Ahmad Maslan

GST WATCH: Deputy Finance Minister Ahmad Maslan is at it again. This time accusing traders who raise prices as being pro-opposition and out to tarnish Barisan Nasional.

“Traders who support the opposition will not lower prices and without ethics they stoke public anger because the Goods and Service Tax (GST) is a Barisan Nasional government policy,” he posted on Twitter.

Is there any empirical survey to support the notion that pro-opposition traders are the ones increasing prices? Or do these traders merely exist in the psychedelic fantasies of a delusional court jester out to save a sinking ship.

The simplistic notion that GST is better than Sales and Service Tax (SST), all because the tax rate is lower is simply wrong. At 6%, GST may seem lower than the 10% SST, but GST is a multi-level tax, that taxes the whole supply chain whereas SST taxes the end-consumer alone.

With GST, everything is taxed unless specifically mentioned as being exempted, while SST only allows tax for items that are stated as taxable. See the difference?

GST has a wider reach, allowing the government to draw in more income at all levels of society.

The notion that all products would be cheaper by 4% is false, because this line of thinking does not take into account the multilevel nature of the GST taxation structure.

Imports from overseas are GST-free, but the moment they enter Malaysia and get transported within our borders, GST applies. And as these goods change hands, GST is applied at every interchange. And ultimately the consumer has to pay the final 6% which is calculated after factoring in all overhead costs.

Can Ahmad Maslan assure us that there was an intentional reduction of cost throughout the supply chain, so that the eventual price of the item is reduced by 4% upon reaching the consumer?

Did the traders ethically decided to do business on a deficit by not taking a profit when the item changed hands throughout the supply chain?

Ahmad Maslan is explaining away a taxation system without taking into account the fundamental reason people do business – to make a profit. At every stage of a supply chain, profit has to be made or else it will drive many out of business.

Complex supply chains would inherently drive prices higher, take for example the construction industry. The supply chains that come together to construct a house would be levied the GST tax at every juncture. And even though the physical house itself may not be levied tax, the contributing push from the cost of production would drive the final selling price of the house up.

The compounded nature of the GST tax itself would offset the fabled 4% discount Ahmad Maslan so proudly proclaims.

So is it really pro-opposition traders who keep prices up?

The very nature of the GST taxation system itself is driving prices up. And traders who supply the eventual consumer are on the receiving end of a supply chain that is forced to pay 6% in tax and still make a profit. Eventually the cost of doing business – overhead and taxes – is passed onto the consumer.

In the end, can any sane person say that GST is good for a nation? A nation already struggling with a dipping economy, low wages and confused ministers who continually insult the intelligence of the very people that suffer under that tax.

The fables of GST according to Ahmad Maslan
29 April 2015 –

The dawn of A Better Malaysia!
Rafidah Aziz, Hannah Yeoh, Ambiga at TTDI ceramah


Mahathir in Putrajaya ceramah


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Nuclear lessons for Malaysia (Part 1) (Part 2)
BN govt is directing attention to distant past and distant future, in order to distract people from present misdeeds and poor governance
Felda - A picture is worth a thousand words
How the 1MDB Scandal Spread Across the World (WSJ)
We cannot afford ridiculously expensive RM55 Billion ECRL!
All that is necessary
for the triumph of evil
is for good men
to do nothing.

- Edmund Burke
When the people
fears their government,
there is TYRANNY;
when the government
fears the people,
there is LIBERTY.

- Thomas Jefferson
Do you hear the people sing?