New Straits Times

Zero GST benefits the people

- RADHA KRISHNAN Kuala Lumpur

I AM happy that the Goods and Services Tax (GST) is no more.

The argument that GST will bring additional revenue to government coffers, while factually accurate, should and cannot be the primary reason for imposing tax or tariff on taxpayers.

The successful implementa­tion of GST or Value Added Tax by other countries cannot be compared to Malaysia.

When the majority of citizens do not want a particular law, unless it is morally wrong or just not right, it should be withdrawn. For example, economists will tell you that petrol subsidies are not good. I agree, but it causes much hardship to the low-income group that it is right that such subsidies be continued.

There are many ways to meet shortfall in revenue. We can curb unwanted expenses, and cancel meaningles­s and expensive programmes. Overseas travels by government officials can be reduced and those accompanyi­ng sports teams can be reduced. Ministers and members of parliament can take home only one pension, instead of two.

Apart from India, majority of countries that impose consumptio­n-based tax are high-income nations, including Singapore.

Malaysia’s industrial ranking and position camouflage the structural defects of us being a low-income nation.

Those who gained from GST are system vendors, tax advisers and the previous government. Not the people.

 ?? FILE PIC ?? People protesting against the Goods and Services Tax in April 2014.
FILE PIC People protesting against the Goods and Services Tax in April 2014.

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