Like it or not, GST is better

AS expected, the Opposition has pledged to abolish the existing goods and services tax (GST) in the first 100 days if it takes over Putrajaya in the 14th General Election. By doing so, it will bring back the abolished sales and services tax (SST), which has been abandoned by most countries around the world due to its inefficiency.

GST contributed RM41.5bil to the national coffers in 2017 and the Government is expecting to collect RM43.8bil in 2018, accounting for 18.3% of its entire estimated revenue. Based on the RM17.2bil SST collected for the year 2014, the expected sum to be collected in 2018 should be around RM20bil if SST is reinstated. If that happens, the national coffers would suffer a shortfall of RM24bil in revenue collection.

Would the abolishment of GST lead to a reduction in the prices of goods and services? It is quite unlikely, bearing in mind that most essential goods are already GST zero rated. Instead, the reinstatement of SST may increase the prices of certain goods due to the impact of double taxation in the tax regime.

Even a conservative country like India finally implemented GST in 2017 to move forward as a progressive nation. Hence, it is unbelievable that the Opposition here has come up with an unreliable proposal to replace GST with SST.

A responsible government has to manage its financial resources efficiently and prudently. With more revenue collected through GST, the Government should be in a better position to bring down the existing debts. As of June 2017, the national debt stood at 50.9% of the gross domestic product (GDP). Unless we increase our revenue or reduce our operating expenditure, the ongoing deficit budgets will only push our national debt to a higher level.

I believe many pragmatic taxpayers like me supported the implementation of GST. In return, we expect the Government to be more responsible and accountable in handling taxpayers’ money. Our country has fallen seven spots to its worst-ever position in the annual Corruption Perceptions Index (CPI), ranking 62nd among 180 countries. Malaysia scored only 47 points out of 100 in 2017, compared to 49 in 2016, as reported by Transparency International recently.

I hope all Malaysians will not only exercise their constitutional right but also their wisdom to vote for a government which can manage the country efficiently. Do not fall prey to unreliable promises or political gimmicks which may not bring sustainable progress to the country.