Consumerist: My Take – 10th December 2014 – Malaysia Not Ready For GST! Shelf It!

Dato Jacob George

‘Basically, I am not worried about the gravy train followers, those politically connected to the powers that be, those leading bourgeoisie lifestyles – ‘kehidupan glamour’ – you know who you are – I am worried more so now of the low- and middle-income earners who will lose a higher percentage of their income to pay for the GST compared with high-income earners!’ – Dato Dr Jacob George

Consumerist: My Take – 10th December 2014 – Malaysia Not Ready For GST! Shelf It!

Looking at the present Malaysian scenario, I humbly believe Prime Minister Najib Tun Razak’s argument that Malaysia should implement the Goods and Services Tax (GST) because other counties already have is not right!

May I point out that the UN conference on Trade and Development Report 2012 had revealed in its report that the GST was more regressive in developing and transition economies than in developed counties.

Basically, I am not worried about the gravy train followers, those politically connected to the powers that be, those leading bourgeoisie lifestyles – ‘kehidupan glamour’ – you know who you are – I am worried more so now of the low- and middle-income earners who will lose a higher percentage of their income to pay for the GST compared with high-income earners!

And hello the transformation ‘gurus and their mantras’ – that listed out countries such as Rwanda, Zimbabwe and Cambodia to justify GST in Malaysia is also completely unsuitable because those nations do not have a good income tax system in place and their production is low.

The fact remains that Malaysia’s operating Budget is like a runaway train and is unstoppable.

Year in year out the administrative expenses is going up by at least 10%.

How much can GST help the Malaysian administration fill up the coffer and at tail end of the day it will still be unable to stop this runaway train unless the government is dead serious is converting the civil service pension to EPF contribution and curtailed on the increase in manpower intake into the civil service/public sector workforce.

And we know that will never happen based on the conversation going on Malaysian Airlines despite massive losses and an embarrassment to the history of aviation and administration let alone of inflated contracts that cannot be challenged?

Coming back to the civil service – we are probably one of the top nation in the world today with the highest number of civil service workforce against our total national population headcount.

We have yet to make or create jobs in the private and commercial sector by making our tax rate amongst the most competitive in the region or in Asia and the business environment more open, zero corruption and less bureaucratic!

True – the GST may bring in an additional RM7.0 billion but the increase in the budget spending had gone up 3 fold of the additional income to be generated.

Can someone tell me how can we balance?

Instead of a high income nation (by the way what is that? Whose mantra?) we will be a pauper nation with all these silly systems and conventions in place by 2020?