Bila Orang Politik Susah, Solution Mereka Simple - Naikkan Cukai.

 This is taken from The Edge here.

KL (April 30): households may pay more tax if consumption tax (GST) implemented

MoF studying possibility of consumption tax (GST) to widen revenue base

ultimately see Malaysian households pay more tax 

announcements by govt to reduce tax deficit clear risk to disposable income

Household spending growth forecast lowered

household spending contracted by 4.3% over 2020

result of Covid-19, restrictions on movement 

total household spending RM922b in 2021 vs RM932.9b in 2019

retail sales y-o-y contraction 

Klang Valley and adjoining towns in Selangor account for 60% of retail sales 

My comments :

What if I tell you that each time the government and Prime Minister change there is one fellow who benefits a lot? During Dr Mahathir's time he created havoc. Under Badawi he created maximum havoc. Then under Najib he created more havoc. Now he is back again "tutoring" Zafrul who does not seem to know anything about anything.

On 1st April 2015 (April Fool's Day) the really stupid fool Najib implemented the GST at 6%. That  killed the economy. For example in that same business year Mydin supermarkets made their first loss in SIXTY YEARS :

• Mydin posted first loss in six decades end March 31, 2016 (FY16)
• net loss of RM156.61 million on revenue of RM2.99 billion.

At that time I warned many, many times through this Blog that it was not yet right or time for us to implement any consumption tax like the GST.  

(For all you dunggus out there the 6% Sales Tax is NOT a consumption tax because the 6% Sales Tax is applied ONLY ONCE at the point of entry. Kira satu kali saja.)

In contrast the consumption tax (GST) is applied at every "change-of-hands" in the distribution of goods and services. 

• For example the Manufacturer charged extra 6%. 
• The wholesaler charged 6% again. 
• Then if there was a stockist he charged 6% again. 
• Finally the retailer charged another 6%. 
• There was a compounding effect. 

That is what happened in 2015 when the GST was introduced.  Which is why the prices of goods shot up sky high. And people with fixed monthly salaries - like a very large proportion of Malay people who shop at Mydin - found that their  monthly salary ran out long before the middle of the month. Hence Mydin suffered their first losses in SIXTY YEARS !! 

And at that time we did not have Covid 19. Plus the oil prices had crashed (2014-2016) and petrol prices had decreased substantially. By all logic lower petrol prices should have boosted the economy. But any savings to the economy from lower petrol prices was killed off by the GST that was introduced in 2015.  

That is why Najib was kicked out in 2018. The 1MDB only made the kickout more complete but he would have been kicked out anyway. He had killed the economy via the GST.

So now the government is thinking of committing suicide again. If Zafrul listens to his 'tutor' and re-introduces the GST believe me the PN will get kicked out. Even if you introduce only 2% consumption tax. Even the 2% consumption tax will create the compounding effect in prices. Prices will go up again. Orang Melayu akan miskin dulu. Because the vast majority of the majority Malays are fixed income, monthly salary earners.

So if you want to lose the elections, go ahead. Implement the consumption tax. 

I have an easier solution - pass a law in Parliament that the government must balance its budget every year. The Government spending cannot exceed government revenue in any one year. Make it a law in Parliament. 

Tuan-tuan, untuk mengelakkan GST, VAT, orang kaya curi duit rakyat, kerajaan membazir duit rakyat dsbnya saya cadangkan kita luluskan undang-undang baru di Parlimen di mana perbelanjaan tahunan Kerajaan (peruntukan Bajet tahunan) tidak boleh melebihi hasil pendapatan Kerajaan dalam tahun itu. Maksudnya Bajet mesti balance.   

Kerajaan hanya dibenarkan pinjam duit jika hasil pendapatan Kerajaan berkurangan atau jatuh untuk tahun itu berbanding tahun sebelumnya. Lets say hasil Kerajaan berkurangan antara tidak melebihi 10% dan tidak kurang daripada 5% berbanding tahun sebelumnya. In which case Kerajaan dibenarkan pinjam SEPARUH sahaja daripada perbezaan itu.

So katakanlah tahun 2022 hasil Kerajaan jatuh 8% berbanding 2021. So Kerajaan boleh pinjam 4% sahaja. (Or something like that).

Tuan-tuan, ahli politik ini bukan saja manusia yang sangat merbahaya tetapi mereka juga bodoh. Bodoh dan merbahaya ini adalah satu kombinasi yang boleh bunuh ekonomi negara. 

Bila mereka lihat bagaimana mudah sekali untuk perah duit rakyat marhaen, bagaimana mudahnya untuk mereka buli kita rakyat marhaen  dengan bayar cukai dan harga tinggi maka mereka pun boleh lose control.

Yang mereka nampak hanya projek besar-besaran di mana mereka yang pegang tanggungjawab untuk A G I H  duit kita. Mereka nampak perbelanjaan Kerajaan berbillion-billion Ringgit yang mana mereka fully in charge untuk buat suka hati dengan duit kita.  

Sebab itulah setiap tahun Kerajaan kita tak cukup duit. Sebab mereka belanja habis semua duit kita.  Lepas itu untuk bagi senang kerja depa pula, para Menteri dan ahli politik kata dia akan naikkan cukai, letak cukai baru dsbnya.  Banyak cantik. Mereka perbodohkan kita.  

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.