High taxes hurting businesses, says expert
KUALA LUMPUR: The Selangor government’s move to raise property-related taxes and other costs has led to a rise in cost of living in the state, according to political economist Isham Jalil.
He said when such costs rose, they adversely affected businesses by adding pressure on companies in terms of cost of doing business.
The Harvard University graduate said the Selangor government’s revenue increased after it raised property-related taxes, when the opposition took over the state government in 2008.
“This led to higher cost (of living), especially in the city areas,” he said in an interview during Bernama News Channel’s “Ruang Bicara Khas” programme hosted by Sherkawi Jirim.
Isham, who had served in the Economic Planning Unit of the Prime Minister’s Department, said the increase of rental for night market lots forced traders to raise the prices of goods.
He said in Selangor and Penang, the development expenditure was smaller than the allocations for states that were led by Barisan Nasional (BN). Isham said property-related taxes in the two states under BN were not as high as the current rates.
“That’s why the BN-led government is always good for growth and is business-friendly.
“As for the opposition-led state governments, they are bad for the economy, business and the people.”
Isham said the government was aware that the Chinese community, who mostly earned a living by doing business, was concerned about the economy, and the cost of living and doing business.
As such, the government had set up a cabinet committee to address the issue of rising cost of living, he added. Bernama