When GST was first proposed, Pakatan Rakyat was strongly against it. But because BN had the numbers, the Bill was passed into law easily. Then came the initial hiccups in implementation which caused great miseries to those businesses affected as well as higher than expected general price increases across the board. But over a period of time, people get used to having the tax system in place while grudging over the higher prices of goods and services which basically affected their standards of living. Some people reduce their spending, like going out less to eat; choosing cheaper food items; and so on.
The whole process from proposal to implementation had caused major changes to affected businesses (those which have annual turnovers of at least Rm500,000), which necessitated initial costs of equipment, software and training, and continual costs of maintaining the approved accounting systems.
How would such business people feel if suddenly, with a change in government, they are told that all that become unnecessary? I am sure they will be fuming mad over the U-turn, regardless of which party causes it.
In terms of government expenditures, I am sure it costed millions from proposal to implementation. Isn't that going to be wasted if the system is abolished? Don't forget, GST replaced the less comprehensive Sales and Service Tax. We need government revenues to administer the country. Oil revenues have been diminishing (oil reserves also depleting), especially with the now much lower oil prices.
We could make GST less of burden by reducing its rate, and adding more exempt as well as zero-rated items. We must admit that with better accounting systems, there will be lesser opportunities of income tax evasion too.
I hope Pakatan Harapan will reconsider whether to abolish GST outright, in its manifesto for the next General Election.
Link
The whole process from proposal to implementation had caused major changes to affected businesses (those which have annual turnovers of at least Rm500,000), which necessitated initial costs of equipment, software and training, and continual costs of maintaining the approved accounting systems.
How would such business people feel if suddenly, with a change in government, they are told that all that become unnecessary? I am sure they will be fuming mad over the U-turn, regardless of which party causes it.
In terms of government expenditures, I am sure it costed millions from proposal to implementation. Isn't that going to be wasted if the system is abolished? Don't forget, GST replaced the less comprehensive Sales and Service Tax. We need government revenues to administer the country. Oil revenues have been diminishing (oil reserves also depleting), especially with the now much lower oil prices.
We could make GST less of burden by reducing its rate, and adding more exempt as well as zero-rated items. We must admit that with better accounting systems, there will be lesser opportunities of income tax evasion too.
I hope Pakatan Harapan will reconsider whether to abolish GST outright, in its manifesto for the next General Election.
1 comment:
By all means abolish it.
Post a Comment