KUALA LUMPUR: Pakatan Harapan’s (PH) Alternative Budget proposals is full of of u-turns and should be seen with a big dose of scepticism said Barisan Nasional (BN) Strategic Communications deputy director, Eric See-To.
He echoed with Prime Minister Datuk Seri Najib Razak and others criticism on the opposition pact’s shadow budget as being unsustainable, unrealistic and full of contradictions.
He adds that several items in the opposition pacts shadow budget stood out for scrutiny.
For many years, Pakatan had criticised the BN Government's removal of blanket subsidies for petrol prices in order to reduce wastage, curb smuggling and reduce unsustainable and inefficient subsidies, he said.
“Although the headlines of their shadow budget says that they will introduce a 20sen per litre subsidy for petrol, the fine print in there says that it is only limited to motorcycles and cars below 1,000cc as it wants the subsidies to be targeted. Pakatan says that only Malaysians with a valid MyKad will benefit from this subsidy.”
See-To said there was no mention made of what was the cost of the implementation of this system or how it will be enforced.
“However, this is a clear indication that Pakatan now agrees with the BN Government's bold but necessary decision to eliminate blanket fuel subsidy was the correct decision for the nation,” he said.
In a statement today See-To said the PH move is a massive U-turn for them, from their long-held stand and a betrayal to their many supporters who had gone for the many rallies organised by them calling for a return of blanket fuel subsidies.
He said another item in Pakatan's budget states that they will not restore subsidies for sugar based on health reasons.
“I am sure many remember the many attack’s by Pakatan leaders on the BN Government when sugar subsidies were completely abolished just 4 years ago in 2013.
He said PH had rejected BN's reason then that the removal of this subsidy is due to high diabetic and obesity rates among Malaysians but instead accused the BN government of being cruel to the people or guilty of cronyism.
“But now Pakatan is using the exact same reasoning that they had aggressively rejected from BN then.
“This is yet another example that BN's bold decision, although politically unpopular then, was made in the best interest of Malaysians,” he said.
See-To said in another U-turn from their promises in the past, PH now says they will no longer abolish PTPTN and cancel all the student loans - a move that BN and civil society had long criticised as being irresponsible and sends out a wrong message.
“Again, Pakatan's U-turn proves that the BN Government was right all along to promote responsible behaviour,” See-To said.
Touching on the Goods and Services Tax (GST) in the shadow budget, he said though although the headline says that Pakatan will abolish GST, this however was incorrect.
He said the pact had stated that on top of re-introducing the 10 per cent Sales Tax and 6 per cent Service tax regime, it will still maintain the existing GST system and reporting system but reduce the 6 per cent rate to zero.
On top of maintaining the GST system, re-introducing the sales and service tax, See-To said PH's shadow budget had also proposed increasing personal income taxes, introducing Capital Gains Tax and Inheritance taxes.
“Pakatan had long claimed that management of the GST system was complicated and a burden to small businesses - alleging that this has caused many small businesses to close down.
“Despite this, Pakatan still wants the businesses to continue the GST tax system on top of the additional sales tax and service tax.
He said this means that even if Pakatan wins and the GST is reduced from 6 per cent to 0 per cent, they can at anytime later on, and literally at the flick of a switch, increase the GST back up to 5 per cent, 6 per cent, 7 per cent or even 10 per cent, since the GST system is still running and not abolished as they claim he said.
“Given the many U-turns already made on key controversial items listed earlier, See-To said it will not be a surprise that PH will also U-Turn on "abolishing" GST should they come into power,” he said adding that at the same time, the pact will be praising the GST system as an efficient and fair tax system that will make Malaysia more competitive and that Malaysia must have the GST just like other 168 countries in the world who already have the tax system.
“Malaysians are advised to treat Pakatan's promises with a big dose of sceptisim as they are masters of U-Turn and hate propaganda.
“After all, it was Pakatan who taught us that a manifesto is not a promise - and neither is a shadow budget, See-To said.