Don't be surprised if Harapan U-turns on GST too

While I agree with the prime minister and others who had criticized Pakatan Harapan's shadow budget as unsustainable, unrealistic and full of contradictions, several items in their shadow budget stands out.

For many years, Harapan had long criticized the BN government's removal of blanket subsidies for petrol prices in order to reduce wastage, curb smuggling and reduce unsustainable and inefficient subsidies.

Although the headlines of their shadow budget say that they will introduce a 20 sen per litre subsidy for petrol, the fine print in there says that it is only limited to motorcycles and cars below 1,000cc, as it wants the subsidies to be targeted. Harapan says that only Malaysians with a valid MyKad will benefit from this subsidy.

No mention is made of what is the cost of the implementation of this system or how it will be enforced. However, this is a clear indication that Harapan now agrees with the BN government's bold but necessary decision to eliminate blanket fuel subsidy was the correct decision for the nation.

This is a massive U-turn from their long-held stand and a betrayal to their many supporters who have gone to the many rallies organized by them calling for a return of blanket fuel subsidies.

Another item in Harapan's budget states that they will not restore subsidies for sugar based on health reasons.

I am sure many remember the many attacks by Harapan leaders on the BN government when sugar subsidies were completely abolished, just four years ago, in 2013.

Harapan had rejected BN's reason then that the removal of this subsidy is due to high diabetes and obesity rates among Malaysians, but instead, accused the BN government of being cruel to the people, or guilty of cronyism.

But now, Harapan is using the exact same reason that they had aggressively rejected from BN then. This is yet another example that BN's bold decision, although politically unpopular then, was made in the best interest of Malaysians.

In another U-turn from their promises in the past, Harapan now says they will no longer abolish PTPTN and cancel all student loans - a move that BN and civil society had long criticized as irresponsible, and sends the wrong message.

Again, Harapan's U-turn proves that the BN government was right all along in promoting responsible behaviour.

U-turn on abolishing GST

Although the headline says that Harapan will abolish GST, this is incorrect, according to their shadow budget. They have stated that on top of re-introducing the 10 percent Sales Tax and six percent Service tax regime, Harapan will still maintain the existing GST system and reporting system, but reduce the six percent rate to zero.

On top of maintaining the GST system, re-introducing the sales and service tax, Harapan's shadow budget had also proposed increasing personal income taxes, introducing Capital Gains Tax and Inheritance taxes.

Harapan had long claimed that the management of the GST system was complicated and a burden to small businesses - alleging that this has caused many small businesses to close down.

Despite this, Harapan still wants businesses to continue the GST tax system on top of the additional sales tax and service tax.

This means that even if Harapan wins and the GST is reduced from six percent to zero percent, they can at any time later on, and literally at the flick of a switch, increase the GST back up to five percent, six percent, seven percent, or even 10 percent, since the GST system is still running and not abolished as they claim.

Given the many U-turns already made on key controversial items I listed earlier, it will not be a surprise that Harapan will also U-Turn on "abolishing" GST should they come to power.

At that time, they will be praising the GST system as an efficient and fair tax system that will make Malaysia more competitive, and that Malaysia must have GST, just like the other 168 countries in the world who already have a GST system.

Malaysians are advised to treat Harapan's promises with a big dose of scepticism as they are masters of U-Turn and hate propaganda. After all, it was Harapan who taught us that a manifesto is not a promise - and neither is a shadow budget.

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ERIC SEE-TO is the Deputy Director of the Barisan Nasional Strategic Communications Team. - Mkini