One day after GST – TK Chua

A housewife when asked in a straw poll on GST yesterday said “I think I will buy only what I need and also (opt for) items on special promotions." 

It was a simple answer but I think it carried a deep meaning if we just ponder a little, on how private and public monies are earned and spent and the difference between the two. 

When private individuals like us earn and own money, we are naturally careful.  We spend on what we need and we haunt for the best deal, either in pricing or quality.  We want to maximise the value of our money regardless of our income and wealth.

But what about government “earning” taxes and spending public money?  Did the government spend based on need? Did the government look for the best deal? Did the government maximise the value of money regardless of the amount of public money in its coffer.   

We accept that government leaders should be accorded with privileges and comfort as they carry out their responsibility. But just as an example in this case - how many government executive jets does a country like Malaysia need?  How many are “need” and beyond that, how many are just obscene indulgence and lack of conscience and sensitivity on the plight of the common folks?  As a comparison to get our bearing right, how many executive jets do Australia, Japan, and Singapore have? 

Why claim that GST is not a burden on the people when the government has continued to spend and invest thoughtlessly and lavishly?  I think “agency”, “moral hazard” and corruption issues are the biggest problems which we, as a nation, must tackle, failing which there is no way to get rid of the financial woes no matter how many more new taxes are imposed on the people.  

Please don’t be obstinate; rein-in unnecessary and extravagant government expenditures or we go bankrupt eventually.  And when the nation goes bankrupt, the people again must pay, not the leaders who have caused it.   

We have now started paying GST, but the government is not sure for how long the teething problems will last.  According to Datuk Ahmad Maslan, Deputy Finance Minister, the teething problems may stabilise after four months but it may last for between seven to eight months. 

If we do not know for how long the problems will last, can we actually say we do not know the nature and extent of our problems.  

If we do not know the nature and extent of our problems, can we actually say we do not know how to solve them? 

If traders know the government is blur and at the loss, can they actually pretend to be stupid for the next few months and pocket all the money they have collected?  Have I not said in my earlier articles that consumers will end up paying through their noses, but the money may not actually reach the government coffer? 

So why was the government not yielding to the earlier request to have trial run for at least a few months before GST takes actual effect? 

Please government, even if the people are willing to pay, you must know how to collect the money efficiently, account it properly and spend it prudently and effectively.

*TK Chua reads The Malaysian Insider.