AS A RETIREE, I should be the one rejecting the implementation of the Goods and ServicesTax (GST). Instead, I have been very supportive of the move since its implementation in April 2015. 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 on a long-term basis.
It is an absurd proposal to abolish the GST. Pakatan Harapan chairman Tun Dr Mahathir recently announced the proposal to do so if the opposition coalition wins the forthcoming 14th general election. But by doing so, the GST will be replaced by the inefficient Sales and Services Tax, which has long been abandoned by most countries, especially the western world. Presently there are more than 160 countries worldwide, with the latest being India, which have adopted GST as a reliable and transparent tax regime.
A responsible government has to manage its financial resources efficiently and prudently.
With more revenues collected through GST, the government is in a better position to reduce its existing 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 encountered by 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.
Our government shouldn’t overlook the current bloated public workforce of 1.6 million, which is causing a big dent to the country’s coffers on an ongoing basis. The estimated emolument costs incurred on the existing workforce come to a staggering RM77.4 billion for 2017, while revenues to be collected for the year only amount to RM219.7 billion. The current ratio between emolument costs and revenues is 35.2 per cent, as compared to 23.3 per cent ten years ago. The pace at which emolument costs are 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 one point in Transparency International’s Corruption Perception Index (CPI) in 2016, scoring only 49 out of 100. There must be real commitment to improve the CPI. Otherwise, the menace will not only persist, but also worsen in the near future.
Obviously, many senior citizens like me haven’t forgotten the impact of the 1997/1998 Asian financial crisis that had brought Malaysia to its knees. Although we had the ability to overcome the crisis without the help from International Monetary Fund then, our economy suffered a big blow and many lives were thrown into turmoil. The share market collapsed along with many companies, big and small, causing thousands to lose their jobs.
I hope our ex-premier, Tun Dr Mahathir, hasn’t forgotten how much destruction that the Asian financial crisis had brought to the nation. He shouldn’t continue to treat Petronas as a cash cow that can always be relied on to provide substantial financial support to the government. Crude oil is a depleting natural resource and the good old days of high crude oil prices are long gone.
PATRICK TEH
Ipoh, Perak