Malaysian time - tardiness or traffic jam? 8.16 pm already.
The forum actually started 20 minutes later. I was sitting on the right side of the main section and had the opportunity to shake hands with YAB Datuk Seri Khalid Ibrahim, YAB Tuan Lim Guan Eng, YB Tuan Tony Pua, YB Dr. Zulkifli Ahmad, and Encik Rafizi Ramli, the forum speakers who walked past towards the stage. The delay was probably because of protocol and waiting for all the speakers to walk in together.
Ms. Tricia Yeoh was MC to welcome and introduce the speakers, while YB Tuan Nik Nazmi was moderator. Among the audience, I spotted YB Teresa Kok and YB Charles Santiago.
Anyway, the wait was worth the trouble and though I was feeling sleepy because of lack of sleep the night before, I came out of the forum convinced by the speakers that we are definitely not ready for GST now. The huge costs in implementing the tax which was estimated at Rm5 billion (to be incurred by both the government and private sectors) just to earn an extra Rm1 billion in revenue does not seem to justify it.
LGE pointed out the unfairness of the tax because it is going to affect everyone in the country when compared with the direct taxes borne by only those who work and do business. Later Tony Pua showed some estimated figures which put the total employees at 12 million people and out of these, only 15% are taxpayers while 85% are not. Set against the total population of 28 million, it works out to 6.4% and 93.6 respectively.
He also showed a simple example of a manufacturer, wholesaler and retailer which illustrated how the GST works. A product sold at Rm200 plus GST at 4% will be sold to a wholesaler at Rm208, and then when value added by the wholesaler, it would be sold at say, Rm300 plus GST, at R312 to the retailer. The manufacturer pays to the government Rm8.00 GST, the wholesaler pays net Rm4.00 (12.00 - 8.00) while the retailer would similarly add on his value added portion and pay the difference between the amount of GST charged to his customer and what he paid (Rm12.00) to the wholesaler. The inflationary impact seems rather obvious to the final consumers.
After the speeches, a member of the audience asked why Lim Guan Eng said 'no compromise' while another said something to the effect 'not now but maybe later'. Dr. Zulkifli explained that he was not against GST per se, but the proposed implementation at a time when the country is not ready. One person said already 135 countries have introduced GST and asked why we are not joining them, while another said it was easy to do away with it but how are Pakatan going to find alternative revenue? Tony Pua convinced the audience that with open tenders and less corruption, the government would have saved tens of billions which far exceeded the amount which could be earned from GST. He also gave the example of how the Federal Government helped its cronies, like providing interest-free loans of more than Rm200 million to Syabas (yes, what a coincidence) for a few years, to be paid after the period. They would rather benefit Puncak Niaga than let the Selangor government take over Syabas.
LGE predicted that the date set for implementation of GST will decide the date of a general election just before it, because of its unpopularity. Another speaker cautioned that the introduction at 4% is misleading the public because the Minister will be empowered to decide on the items which are liable under GST, as well as increase its tax rate, without Parliamentary approval.
Both YAB Tuan Lim Guan Eng and YAB Datuk Seri Khalid Ibrahim had to excuse themselves after their speeches to go to Kuala Selangor. Later, MP for Kuala Selangor, YB Dr. Zulkifli Ahmad left as well because of the event there.
(Note: The above account is based on my recollection of last night's speeches without taking notes. I apologise for any misquotation of speeches or figures which was likely under the circumstances.)
My earlier post on GST:
A letter in Malaysiakini explains in more details, the workings of the proposed GST:
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