Wednesday, March 24, 2010

KJ: GST Won't Burden Consumers

In an exclusive interview with, UMNO Youth Chief Khairy Jamaluddin discusses the controversial GST bill and was in favour of quick implementation of GST.

If you have not watch my take on the same issue with Malaysiakini, it's available here.


Anonymous said...

His argument is that we should have GST to balance direct and indirect tax? Does he even understand what he is talking about instead of just superficially reading about efficiency of balance of direct and indirect tax?

We have an inefficient economy what the hell is he talking about balance of direct and indirect tax?We Have a broken engine so the answer is to pour more fuel and crank it up?

Tony, you can go to UK and tell your Cambridge mates that as far as Malaysia is concern Cambridge can hold it head high compared to Oxford.

Anonymous said...

In his(KJ) interview with Malaysiakini,he said that if the goods cost RM5 and after GST,it will cost RM6 to RM7 the most.My god!what the fucker is this Oxford boy talking about? This is an increase of 20 to 40%! and he say it wont burden the rakyat!May be to him is nothing bcos he is of different class.

Jayenjr said...

Whenever people like KJ talks about GST, I remind myself that they are adept at talking about it from a limited angle. Perhaps even a skewered one. GST, by itself, is a good idea, in that tax is based on consumption; the more you consume, the more you pay. In an efficient system, I wouldn't mind considering the merits of GST. But, I am talking about an efficient system here. Malaysia, by all accounts, is anything but efficient. We don't need to debate this fact. If, the argument is GST can eventually reduce costs, people like Khairy ignore the fact that the inefficiencies prevalent in our system, cost the taxpayer & rakyat much more. Who thinks our Customs Dept is up to the mark, should GST be implemented? Ever tried to get a refund from Kastam? I did. Took me 12 months. Now, try & work that out for GST refunds. Probably the most efficient gov'n dept is the Inland Revenue, but even they don't keep up to their time-line when it comes to refunds. What more our Kastam? Khairy is so adept at talking about the merits of GST, but i suspect it is more of a theory book regurgitation by him rather than addressing its implementation when we have a civil service that is bogged down by inefficiency. I am pretty sure you don't need an Oxford degree to do that. Does Khairy even evaluate the effective costs of doing business in Malaysia? Our tax rates are higher than countries that impose GST; we have road taxes, we pay our insurance premiums, educating our children is becoming more expensive; we have to pay security services to guard our houses because the police is inefficient; we need Astro because our free-to-air TV have become outlets for B-grade FINAS/UMNO productions; we pay increasing costs for health care/road/motor vehicles/utilities. Pls read this article by the Sun even 3rd party insurance will now be capped. And the insurers plan to get the government to co-insure the risk. In other words, the ball goes back to the tax payer! So, the cost of lifestyle for the average Malaysian must account for all this items, and not just get dreamy about the supposed merits of GST. Malaysia today suffers from years of financial abuse & corruption; Khairy's theory book solution isn't going to solve the problem. Nothing will, as long as corruption is allowed to exist.

But, this is what Najib's government is all about. When he lends his support to Isa Samad, I don't see it in any other way.

So, for now, take this GST idea & keep it on the shelf. Deal with real reforms to get real & meaningful results.

vinon said...

someone need re-schooling before going for an interview.

Anonymous said...

I am a student and I don't work back in Malaysia. Therefore, I do not pay income tax. As a student and consumer at the same time, my allowance is limited because I do not work. If the government implement this GST, thus, the value of my allowance decrease by 3-4 percent. At the same time, my allowance will not increase by 3-4 percent because my parents won't increase it in order to help me get through of the GST. I can spend lesser now and my buying power is reduced too. So, the government didn't view the market as a whole.

I'll give another scenario, I'm in the US now and I'm still not working because I can only work on-campus. It is hard to get an on-campus job due to the competitive nature of getting one. Thus, I'm in the same situation in Malaysia. I bought a pair of Nike shoes last month and the price is $84 but after including the GST, the price goes up to more than $90. Isn't it a burden for me? Of course it is, I can spend the $6 plus to buy my groceries instead of contributing to a state that I am deem as an alien. Get the meaning Khairy, GST is not friendly to me as a student and consumer. It will only inflate the price of the goods.

Anonymous said...

Anyway , issue about hak generasi masa depan rakyat Malaysia sometimes look like ruse afterall rakyat own how many % of this , govt policy stated should not delight public , don't exprect cheap petrol afterall this resources worth AS$100 ( RM 320 billion ) will still belong to Petronas croni if two oil-rich areas ( Z ) not given to Brunei . I even see policeman stop a couple for not having motorcycle road tax and heard something like
" Kenapa tak pilih boyfriend yang ada kereta Camry ? "
A postman ( 3 children age 2 to 6 ) get 8 year jails for 0.885 kilogram kanabis .
Do we think Z issue is relevant for them ?
For those driving Honda , is this a problem ? Crime is crime and Bad law is bad law , road tax must paid , right ?
Subang Jaya - A company director get robbed during breakfast in front a few customer in restaurant , hand over his dompet and Honda car key .
So our policy made someone paying road tax until poor guy can't use the road . The next day , even Ketua Polis Selangor's car also get stolen . He underestimates this problem is another matter but he must forget that his dept
given warning to those NGO who protest GST .

So why high income economy , not more welfare ? To improve people live ( but with same Khairy : 10000 poor people ratio ) ? or
want to take shortcut to tell public that all what public hospital , school no need because M'sia people ( high income ) dream during sleep , then GST Tax .

If the goods cost RM5 and after GST , it will cost RM6 to RM7 the most . Yes , this is an increase of 20 to 40%! .
The problem for people have RM 10 in pocket , we call it increase cost of living .
But problem of people have only RM 5 in pocket , food without drink .
Direct and indirect tax balance or not , we don't know but what we know your food and beverage menu already not balance , becoming more not balance .
Later some guy compain again they get rob by people not money to eat . But we pulak forget we told public in Malaysia not cheap roti . Why don't try one day not to eat . So who worst ? In this situation , I don't know why I sympathy the robber more .