Bukit Mertajam MP Steven Sim of DAP has debunked Labis MP Chua Tee Yong's claim that the goods and services tax (GST) can redistribute wealth from the rich to the poor.
The opposition politician described the new tax which the government intends to introduce as regressive.
Sim (left) said low and middle income households would be affected most, based on research done by the Penang Institute.
The opposition politician described the new tax which the government intends to introduce as regressive.
Sim (left) said low and middle income households would be affected most, based on research done by the Penang Institute.
"Chua's statement is made without any basis. Those earning an average monthly income of RM30,815 only pay 1.56 per cent for GSTI (GST as a percentage of income) while the lowest earning households with an average monthly income of RM605, pay 2.62 percent (GSTI)," he said.
"Mid-level income households with those earning RM2,579 a month pay 3.07 GSTI. It is obvious that the GST will affect low and middle income households more than the high income ones."
Sim said households which will be severely affected by the GSTI are single person households, young households (less than 24 years), bumiputera households, clerical workers and skilled agricultural and fishery workers.
The households most affected by GST in terms of paying higher GSTI are, single-person households, young households (less than 24 years old, bumiputera households, those in Peninsula Malaysia, and those working as clerical workers, skilled agricultural and fishery workers.
Earlier today, Chua (right), from the MCA, reasoned that the GST can redistribute the wealth from the rich to the poor as the higher income group is expected to pay more GST and the funds can be used to target subsidies to the lower income group.
Sim also said Chua's analysis does not have any proposal to curb corruption and stop leakages.
Pointing to the Auditor-General report, Sim said Serdang MP Ong Kian Ming, estimated in 2012 the government lost RM6.5 billion in wastage and in 2008, the auditor-general stated the country lost RM28 billion a year due to mismanagement including corruption.
"If the GST is implemented at seven per cent, a total of RM7.5 billion in revenue will be collected and this is paltry compared to the money wasted and lost due to bad governance by the government which MCA is part of," said Sim.
Challenging Chua to a debate
Describing Chua's argument as wrong, Sim urged the MCA leader to stop misleading the public to support the Umno-BN's agenda.
"If Chua does not agree with my statement, I challenge him to an open debate to show that GST is not suitable for the country at this moment," he said adding the MCA and BN should look at the Pakatan Rakyat's alternative budget.
Sim said the Pakatan budget, represents how savings can be made without implementing GST.
Today it was reported that Pakatan MPs claimed that the implementation of GST would only burden the public further due to escalating costs as a result of the withdrawal of petrol subsidies.
PKR vice-president Nurul Izzah Anwar for one (left), said the GST is a lazy way to increase the government's revenue without plugging the leakages and wastage in the administration.
"Mid-level income households with those earning RM2,579 a month pay 3.07 GSTI. It is obvious that the GST will affect low and middle income households more than the high income ones."
Sim said households which will be severely affected by the GSTI are single person households, young households (less than 24 years), bumiputera households, clerical workers and skilled agricultural and fishery workers.
The households most affected by GST in terms of paying higher GSTI are, single-person households, young households (less than 24 years old, bumiputera households, those in Peninsula Malaysia, and those working as clerical workers, skilled agricultural and fishery workers.
Earlier today, Chua (right), from the MCA, reasoned that the GST can redistribute the wealth from the rich to the poor as the higher income group is expected to pay more GST and the funds can be used to target subsidies to the lower income group.Sim also said Chua's analysis does not have any proposal to curb corruption and stop leakages.
Pointing to the Auditor-General report, Sim said Serdang MP Ong Kian Ming, estimated in 2012 the government lost RM6.5 billion in wastage and in 2008, the auditor-general stated the country lost RM28 billion a year due to mismanagement including corruption.
"If the GST is implemented at seven per cent, a total of RM7.5 billion in revenue will be collected and this is paltry compared to the money wasted and lost due to bad governance by the government which MCA is part of," said Sim.
Challenging Chua to a debate
Describing Chua's argument as wrong, Sim urged the MCA leader to stop misleading the public to support the Umno-BN's agenda.
"If Chua does not agree with my statement, I challenge him to an open debate to show that GST is not suitable for the country at this moment," he said adding the MCA and BN should look at the Pakatan Rakyat's alternative budget.
Sim said the Pakatan budget, represents how savings can be made without implementing GST.Today it was reported that Pakatan MPs claimed that the implementation of GST would only burden the public further due to escalating costs as a result of the withdrawal of petrol subsidies.
PKR vice-president Nurul Izzah Anwar for one (left), said the GST is a lazy way to increase the government's revenue without plugging the leakages and wastage in the administration.
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