IMPLEMENTING GST WAS WISE MOVE

AS a retiree, I should be opposed to the implementation of the Goods and Services Tax (GST). Instead, I have been very supportive.

Implementing GST is not only a wise move, but also a step in the right direction for Malaysia to become a progressive nation. We can’t depend on crude oil as a sustainable source of revenue.

The proposal by Pakatan Harapan chairman Tun Dr Mahathir Mohamad to abolish the Goods and Services Tax, if the opposition coalition wins the 14th general election, is absurd. It will result in its replacement by the inefficient Sales and Services Tax, which has long been abandoned by most countries, especially in the West. More than 160 countries, the latest being India, have adopted GST as a reliable and transparent tax regime.

A responsible government has to manage its financial resources efficiently and prudently.

With more revenue collected through GST, the government is in a better position to reduce its debts. As Malaysia has been running a deficit economy for a long time, there is an urgent need to rectify the weakness, otherwise the country is vulnerable to a national debt crisis similar to the one facing Greece. If that happens, the entire nation will have to endure harsh austerity measures to fix the problem, and it will take years for the economy to recover.

The government shouldn’t overlook the bloated public workforce of 1.6 million, which is a huge financial drain on the country’s coffers on an ongoing basis.

The estimated emolument costs incurred this year come to a staggering RM77.4 billion, while revenues to be collected amount to only RM219.7 billion. This means this year’s emolument costs take up 35.2 per cent of revenues collected, compared with 23.3 per cent 10 years ago. The pace at which emolument costs is growing is worrisome.

I believe many pragmatic taxpayers like me are supportive of the GST implementation. In return, we expect the government to be more responsible and accountable in handling taxpayers’ money. Malaysia dropped by one point in Transparency International’s Corruption Perception Index (CPI) last year, scoring only 49 out of 100. There must be real commitment to improve the country’s CPI score. Otherwise, the problem will not only persist, but worsen in the near future.

Obviously, many senior citizens like me haven’t forgotten the impact of the 1997/1998 Asian Financial Crisis that brought Malaysia to its knees. Although we managed to overcome the crisis without the help of the International

Monetary Fund, our economy suffered a big blow and many lives were thrown into turmoil. The share market collapsed, along with many companies, causing thousands to lose their jobs.

I hope our ex-prime minister hasn’t forgotten the destruction that the Asian Financial Crisis brought to the nation. He shouldn’t continue to treat Petronas as a cash cow that can always be relied on to provide financial support to the government. Crude oil is a depleting natural resource and the good old days of high crude oil prices are gone.