Use GST revenue to uplift the poor

Since the GST will affect even the poor, the revenue collected from it should be channelled into programmes that benefit this group in particular.

COMMENT

The full list of goods to be given the Goods & Services Tax (GST) waiver announced by Second Finance Minister Ahmad Husni Hanadzlah in June should be revealed this month.

While Pakatan Rakyat lawmakers have criticised the GST as being a regressive form of taxation, others have countered their argument by claiming it is fair and responsible because the more you consume, the more you are taxed.

Be that as it may, the poor in our society as well as those from the low-income group are not exempt and will therefore feel the brunt of this taxation system after it is imposed on April 1 next year.

The opposition has argued that these two groups should not be taxed. Yet those on the other side of the spectrum say that every member of society must be taxed in order to play a role in building the nation.

Both sides of the argument have its merits but what is more important is that as the GST is a consumption tax and is more broad-based then the current Sales & Service Tax (SST), the government ends up the main winner as it earns more revenue.

The issue here is what becomes of this revenue.

For starters, the revenue collected should be used to benefit the rakyat in meaningful ways. Hence the first group of people who should gain from it is the homeless.

Government-run community shelters should be built for the homeless to keep them off the streets.

Job-training and job placement programmes for the homeless should also be funded by the proceeds from the GST.

These are just two obvious ways to uplift the quality of life of those in most need of it in our society.

The government has mentioned that 160 countries already observe this taxation system and that it is the way forward if we are to bring about significant and lasting progress to the nation.

The rakyat had been assured that the prices of some goods will be reduced after the GST is implemented, while others will only see a marginal price increase or none at all.

Let us hope that these rosy promises hold true.

In the meantime, there is much anxiety in the air over this taxation system and whether the list of goods under the GST-waiver will include RON95.