PARTI Sosialis Malaysia (PSM) today hurled brickbats at Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz for mulling to reintroduce the Goods and Services Tax (GST) in Malaysia.
“In a way, it is an effective way to collect taxes but if you at it closely, it’s a move to shift the tax burden from the rich to the poor.
“This is a classic neo-liberal mindset employed in a lot of countries world over. Under the ideology, the wealthy will always find ways to pass the burden of financing the nation to the poorer segment of the society,” its deputy chairperson S Arutchelvan told FocusM.
In a special interview with Nikkei Asia in Tokyo two weeks ago, Prime Minister Datuk Seri Ismail Sabri Yaakob said the Government is studying the possibility of reintroducing the GST to widen the country’s revenue base.
Following brickbats from the people, the Prime Minister said that the Government was merely studying the matter and have yet to decide on it.
Earlier today, Tengku Zafrul defended the Government’s decision to review the GST, adding the tax regime could not be bad as it was implemented in over 90% countries worldwide.
Touching on the matter, Arutchelvan said that COVID-19 has proved the world on how the capitalist system had failed to address the people’s plight, leaving the Government with no choice but to intervene directly to help the masses and businesses to survive.
On the 90% of the countries worldwide imposing the GST, the PSM leader queried Tengku Zafrul on why he did not speak of those countries imposing several taxes on the rich, which was not implemented here.
“Many countries out there impose some from of wealth tax, inheritance tax and capitals gains tax on their top 1% to beef up the nation’s coffers.
“Malaysia doesn’t have such taxes in place. Since they are talking about expanding the nation’s coffers using the GST, why not talk about the taxes I mentioned too?” he asked.
However, Arutchelvan opined that local politicians would be hard-pressed to tax the rich, as they require the latter’s financial support to run for elections.
“In my view, the GST is a regressive tax. Yes, the Government can provide exemption on many goods but sooner or later, those exempted goods will get taxed too,” the former local councillor claimed.
Protecting the 1%
On the targeted subsidy idea, Arutchelvan voiced support on the matter and said that it was timely for the Government to stop “subsidising the top 1%”.
However, he voiced scepticism on the Government’s resolve to implement such measures, given such talk has been happening for years.
“Several years back, our representative asked the Parliament to disclose details on how the top 1% were being taxed. However, the Government replied that they cannot reveal those detail citing the Official Secrets Act and the Personal Data Protection Act.
“This is the problem with our Government. Besides, even if they do impose targeted subsidies, the top 1% will find ways to manoeuvre around it.
“For example, if Putrajaya imposes targeted fuel subsidies, the rich will just get several cars and use certain cars to get the subsidised fuel,” he quipped.
Arutchelvan also queried on why certain companies are given tax breaks despite repeated argument that the Government needs to expand its revenue base.
“For example, rare earth miner Lynas was given 12-years tax break when it was established in Pahang despite its effects on our environment. Do you see the hypocrisy here?” he queried. – June 9, 2022
