Lame Brain Suggestions By Two Lame Brothers

 

• PETALING JAYA: proposed windfall tax on palm oil increased from 3% to 6% 
• prices currently RM4,700 per tonne
• 3% increase double government’s earnings to RM2.4b 

(OSTB : Imagine how many handbags could be bought with that money) 

• Putrajaya earned RM300m in 1st quarter 2021
• accumulate to RM1.2b a year 
• I believe raising 3% tax (RM282.tonne) would not have big impact on producers
• current market price RM4,700/mt far higher than cost of RM1,800/mt

(OSTB : Err..so on the flipside, if the price of palm oil crashes is there a guarantee of tax rebates specially for the palm oil sector? Fair fair lah. You cannot just be taxing the happy times and not be easing up during the hardtimes?)

• I propose govt raise windfall tax from 3% to 6% 
• boost earnings by RM1.2b 
• RM300m can be allocated for free mass screenings (Covid)
• remaining RM900m use to subsidise chicken feed to keep chicken prices from spiking,” he said in a Facebook post today

(OSTB : Alamak this is Robbing Hood, robbing Peter to pay Paul. So he wants to take money from the palm oil producers and give it to the chicken farmers!! I guess you must have really sailed through your degree in economics to come up with these types of brain dead ideas.

The other day the other brother said lets slap a super tax on the glove manufacturers on their excess profits. Maybe it does run in the family. 

So the other brother's preference for high taxes was glove manufacturers. 
This fellow says hit the palm oil producers with a super tax.

What about rubber producers?  Gloves are made from rubber. If the rubber glove manufacturers are making excess profits, surely the rubber producers would also be making excess profits.

I found this rubber price chart. As you can see from May 2020 the rubber prices have been moving up. It must be the Corona Virus and the demand for rubber gloves.

So why not tax the rubber producers as well? It may add another billion to the government's coffers. 

Maybe they can use the extra money from a rubber tax to subsidise the goat farmers. Have you checked out the price of local mutton lately? Its over RM60 per kg in KL. Beef (lean meat) is RM46/kg ! There is not going to be too much daging rendang for this year's Hari Raya. Dah-lah Covid, dah-lah tak ada kerja, lepas tu harga daging pula naik gila.

Then the courier boys, the food delivery boys, the online retailers are all making super duper profits. Online retailing has never had it so good. All over Malaysia the courier companies are renting new space and opening up new 'logistics centers'. The industry is facing super duper growth.

So should we put an extra super tax on the courier guys as well? Why not? They are also benefitting greatly from the Covid situation.

And as I said - there must be a quid pro quo.  When there is a downturn (say after the Covid is licked - maybe by the Second Coming of Jesus Christ, the return of Imam Mahdi etc) then the government must also guarantee a special tax rebate for the glove manufacturers, palm oil producers, courier companies, online retailers etc.

Must be fair lah. Good times you want to tax them extra. Bad times you must tax them less lah. Kasi balance lah. 

Apa macam boleh? Do you understand the words that are coming out of my mouth?

You have to be much cleverer than making easy suggestions of robbing Peter to pay Paul.  Especially at stressful times when investments are so difficult to come by. 

These people work hard for their money. In the homes where they grew up their parents taught them that stealing money is not an option. 

In these very difficult times all investors (domestic and foreign) are at their wits ends trying to earn that extra dollar. Imposing extra taxes and extra burdens on targeted sectors will not only frighten new investments in that sector but it will frighten all investors who will be annoyed with the governments arbitrary tax policies. 

May I make a suggestion - its about time you started stitching some shirts and trousers with horizontal stripes.  You know, to be comfortable. That may be time better spent.  

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