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Monday, October 29, 2018

Some Thoughts On The Budget : Please Do Not Increase Taxes Or Add To Living Expenses In The New Budget

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The Budget is due on Friday October the 2nd, 2018.  Talk is it is going to be a "big" Budget, much larger than last year's RM380 Billion.  How is the government going to find money to increase the Budget?

This is also the first Budget post Barisan Nasional but with 1.6 million Civil Servants still intact. The DAP has said that they would like to slice the Civil Service by 50%.  

It looks like the Operating Budget (untuk bayar gaji Civil Servants) is going to be kept  large. In the long run this is NOT good. The Development Budget (to build roads, hospitals and schools) should be larger than the Operating Budget. 

My suggestion is this, keep the 1.6 Million Civil Servants but do not add any more to the 1.6 million.  That is the Malay economy.

Reduce the Civil Service by attrition - meaning replace only yang sudah pencen, BUT for every two pensioners hire only one replacement. This will reduce the numbers perhaps without causing too much shock in the Malay economy.

Then grow the economy to keep the Civil Service fully productive. 
In 2017 our GDP was about US315 Billion. 
Singapore's was higher at US324 Billion.  
Lets increase the GDP by 50% in FIVE years and reduce the Civil Service by say 30%?  It can be done.

Talk is NEW TAXES may be introduced in the Budget on Friday including INHERITANCE TAXES. 

Its a bit late in the day to be making requests but please DO NOT burden the people with NEW TAXES.

There are many ways for the government to increase its revenue.  
Increasing taxes are not the only way.
Reducing taxes can also increase government revenue.

To increase its revenue the government should NOT look upon itself any differently from say an employer would reward an employee.  

When your employee performs well, generates more sales and profits for your company then of course that employee will get more bonuses, a higher salary, more commissions etc. 

The same should apply for government. 
If the government wants more revenue then the government should create more wealth in the economy. 
Create more economic growth, create more economic opportunities, 

If you create more wealth then the government should also earn more revenue. 

More business activity in the economy will generate more sales, profits, corporate taxes, income taxes, licensing taxes, stamp duties for property transactions, import duties etc etc.

And please just remove the shackles.  We have suffered from 40 years of shackles. 
Please liberalise the economy. Everyone will become wealthier.  Set the people free to do what they want.  

Just liberalising the economy will create tremendous growth.   The biggest obstacles to our growth are all the false and artificial restrictions that we have placed in the economy.

If the Bidget is going to have NEW TAXES then give "intelligent" exceptions. What are intelligent exceptions?  

If there is going to be Inheritance Taxes, then give exemption for one property (house, shophouse, land etc) that has the highest value and highest inheritance taxes if there are less than THREE inheritors. 

If there are more than THREE inheritors (waris) then increase the Inheritance Tax  exemption to TWO properties. Something like that. 

The same goes for any other NEW TAXES. If there are going to be new taxes then please allow for INTELLIGENT exemptions. The government must allow for exemptions. 

Do not simply burden the people - just because the government wants to increase its own revenue.

Pleeeeeeeeease reduce car prices - by reducing ALL direct and indirect taxes (duties, taxes, excise, exercise, whatever). By whatever name you call it tahi ayam is tahi ayam ok. It stinks. So please abolish or drastically reduce taxes on import of cars and motor vehicles. 

At the middle class level and below, easily 20% to 30% of monthly income goes towards car payments, fuel and maintenance costs. 

Malaysia still SUFFERS among the highest car prices in the world.  WHY ?

If our car prices can just match world market prices, it will save plenty money for our poor Malaysians. 

With more money in the pocket Malaysian purchasing power will increase. Consumer spending will increase. Or savings will increase - banks will have more money to lend. It will stimulate more economic growth.

Please reduce the tolls. No tolls or lower tolls will stimulate tremendous economic growth. Trust me on this. 

Just let the people go. Free the people. The people know what to do with their time and money. The people will be able to generate great economic growth. Just remove the obstacles that stand in their way. 

Please abolish the law that PREVENTS Malaysians from owning their own satellite dishes (above 36 inches in size).  That law was enacted to give the satellite tv operators a monopoly. 

WHY?  Why tie ourselves up for no good reason. 

32 million Malaysians have to pay to make ONE Malaysian a satellite tv billionaire? 

So please let Malaysians own their own satellite dishes. 

Just remove the shackles. Our country will be fine. 

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