As expected, the opposition has pledged to abolish the Goods and Services Tax (GST) in the first 100 days of it coming to power if it wins the 14th General Election.
That would mean it is thinking of reinstating the Sales and Services Tax (SST), which has been abandoned by most countries due to its inefficiency.
GST contributed RM41.5 billion to the national coffers last years, and the government expects to collect RM43.8 billion this year, accounting for 18.3 per cent of its entire estimated revenue.
Based on the RM17.2 billion SST collected in 2014, the expected sum to be collected this year shall be around RM20 billion, if SST were to be reinstated.
If that happens, the national coffers will have a shortfall of RM24 billion.
Will the abolishment of GST bring about a reduction in the prices of goods and services? It is unlikely that will happen.
Most essential goods are GST zero rated. Instead, the reinstatement of SST may increase the prices of certain goods due to the impact of double taxation.
Even India implemented GST last year to move forward as a progressive nation.
It is unbelievable that the opposition, led by Tun Dr Mahathir Mohamad, came out with an unreliable proposal to replace GST with SST.
As the longest-serving former prime minister, how could he be so shortsighted to propose to reinstate SST?
He must have forgotten his vision to turn Malaysia into a developed nation by 2020.
A 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 reduce its debts.
Up to June last year, the national debt stood at 50.9 per cent of the gross domestic product (GDP).
Unless we can increase our revenue or reduce our operating expenditure, the deficit budget will only push our national debt to a higher level if SST is reinstated.
I believe many pragmatic taxpayers like me support the implementation of GST.
We want a government that is responsible and accountable.
I hope Malaysians will not only exercise their constitutional rights but also their wisdom to vote for a government that can manage the country efficiently.
PATRICK TEH
Ipoh, Perak