GOODS AND SERVICES TAX (GST)

**WISHING ALL READERS OF CHEDET A VERY HAPPY DEEPAVALI**

1. Najib’s apologists have tried very hard to justify the GST. The Government collects more than forty-billion Ringgit from GST last year. And more will be collected in the coming years.

2. Unlike income tax, GST is not based on profits. Even when no profits are made or losses incurred the 6% GST must still be paid. It adds to the cost of doing business.

3. The G.T is paid up front. Naturally businessmen will pass on the tax to the consumers. The price of goods and services will have to be raised and this results in inflation. The cost of living would go up. And it has.

4. Effectively the GST is paid by everyone. Even a baby consuming milk would be taxed.

5. Some items might be taxed twice as GST is collected with each transaction. The Government promises to reimburse the tax paid if it is shown that the tax has been paid twice. But this is a slow process and may take months or years. The rebate will not be passed on to the consumers.

6. The reasons why Najib’s Government does not have enough money is because of his abuses in the management of Government funds to gain popularity for himself.

7. BR1M for example costs the Government seven billion Ringgit or more a year. Then there are other handouts such as RM300 for fishermen, RM800 for party members who are chairman of JKKK (Village Development Committee), thousands for Hajj Pilgrims, pensions for retirees not eligible for pension, etc.

8. The emoluments for civil servants have been revised frequently, sometimes by 25%. In addition the number of Government employees has increased to 1,600,000 from the 1 million in the 1980s. This will cause the salary bill to double or more.

9. The increase in minimum wage increases the salaries of all workers at all levels in the Government as well as the private sector. From about RM700, minimum wage has increased to RM1,200 – almost double. When the minimum wage is increased those already receiving more than the new minimum must be increased also. This is in order to sustain parity between different levels or ranks of the employees.

10. Najib also sets up numerous extra Governmental organisations. PEMANDU is a good example where huge salaries, well above the Government’s pay scale are paid to the heads and the staff. New posts are also created in and outside the Government which do not conform to Government’s salary scale. How much they are paid is not known.

11. All these people who financially benefit from Najib’s largesse may be happy. But actually, the increases in their income benefits them very little. This is because the increases of their pay invariably cause a rise in the cost of living. In other words, the increase in pay does not increase the purchasing power.

12. It is not how much one is paid that is important. What really matters is one’s purchasing power. When cost of goods and services increases the extra income that one gets is quite meaningless.

13. We all know of countries where the pay is in millions but they are all poor because of the depreciation in purchasing power of their money. A country can fail and become bankrupt where workers are paid thousands or even millions every month.

14. During Najib’s premiership crude oil sometimes sold at USD130 per barrel. Petronas paid billions to the Government when petroleum prices were high. Now oil prices have come down to USD50 per barrel. Even then it is higher than during the 80s and 90s when oil was selling at less than USD30 per barrel. So at USD50 Government oil profits and taxes would still be much more than in those years of low oil price.

15. The same goes for profits made by banks and large businesses. It is not unusual to see them make billions of Ringgit in profits p.a. And accordingly the Government must receive much more money by way of petroleum profits and taxes and corporate taxes even today.

16. For all these reasons the Government of today must collect more than was collected in the 80s and 90s. But the Government claims it had to introduce the G.S.T because it is short of funds.

17. The truth is that Najib’s regime is abusing Government revenue by spending huge sums to get popular support for Najib.

18. One of the highest contributor to the shortage of fund is the loans taken by Najib. There is a ceiling to the loans that the Government can raise. But Najib resorted to borrowing by a Government company – the 1MDB, which is not limited by Government rules.

19. Although 1MDB is not a part of the Government, the fact is that it is 100% owned by the Government. This means that if the loan is not serviced or repaid, the Government will have to pay the loans and interest.

20. And so when 1MDB lost money, Government had to take over the company and pay the interest and the loan.

21. It is the same with the 55 billion Ringgit for the east coast Railway. Altogether it is estimated that Najib has borrowed almost 200 billion Ringgit. Some of the loans carry interest rates of 6%.

22. Assuming the average interest rate is 3%, the Government will have to pay 6 billion yearly in interest alone. Paying the principal will cost more billions. It may take two generations to settle all the loans.

23. For servicing and repayment of the loans Najib has resorted to buying Government land at a low price, revaluing it and selling the land at inflated prices.

24. For land at TRX (Tun Razak Exchange) 1MDB paid only RM60/- psf to the Government. It was sold at RM3,500/- psf to Tabung Haji. So the savings of poor people for performing the Hajj have given 1MDB very high returns.

25. The Airforce base at Sungei Besi was also sold by Najib, as were land in Melaka and Pahang.

26. Still the money raised through these land sales will not be able to service and repay loans. So money from normal Government revenue must be used. There will not be enough money in the Consolidated Fund. The next source would be to tax the people. And so the GST.

27. It is true that KWSP, with billions of Ringgit, will have difficulty in investing within the country. It should invest in good foreign companies. But the decision to invest in any company should be based on business considerations. It should not be influenced by political imperatives.

28. But clearly the KWSP is being forced to invest in the United States to please Trump and Najib’s need to have pictures of himself with Trump to show that what the American Department of Justice says about him is not true. But the DoJ has not stopped the investigation on Najib’s involvement in money laundering in the U.S.

29. If the Government wants to reduce the huge deficits every year, what is needed is to get rid of the belief that money can buy popularity. It cannot. It has only made the Government and Najib more unpopular.

30. All those things which increase the cost of governance should be dropped. The 1MDB money can be recovered as we know where the money is. Najib will not do this as it means surrendering all the money he has taken. Rosmah Mansor, Jho Low and Riza Aziz and others who has got the stolen money must also surrender. Najib cannot get the money frozen by the Governments of Singapore, the U.S. and Switzerland. There must also be quite a lot in the U.K. as well. The frozen money will not be returned until Najib who stole it is no longer the head of the Malaysian Government.

31. BR1M should be converted to unemployment benefit for the hardcore poor. Most of the present recipients can afford to do without BR1M. The actual amount of support for hard core poor should be raised and paid every month, not once a year.

32. The waters surrounding Malaysia should be patrolled by the Malaysian police, the Maritime Agency and the Malaysian Navy to prevent foreign fishermen from intruding into our territorial waters. With this the Malaysian fishermen would catch more fish and earn higher incomes. The RM300 allowance can be stopped.

33. Various other allowances to all and sundry should be revised or stopped.

34. Pay increases for Government servants should not be accompanied with inflation. There are ways of doing this.

35. If the Government is prudent in the management of Government funds, there should be no shortages. The need for new taxes can be avoided.

36. The GST is really not necessary for Malaysia. It can be abolished without affecting the revenues of the Government and without creating a burden for the people.

14 thoughts on “GOODS AND SERVICES TAX (GST)”

  1. Assalamualikum tun.

    1.i heard that gst is efficient.i wonder how efficient is that?

    2.i run a gym business.last time customs come to my shop and ask me whether my sales every month exceed 40k.well since they will only tax me with gst if my annual sales exceed 500k.

    3.didnt they realizes that the most important thing is the profit not the total sales?gym doesnt have any cost.all of those membership fee and pay per entry fee.100% will goes to my pocket..what about shop that selling gym supplements?one supplement cost mere 200 and the profit may be 50 ringgit for each.so even though their sales maybe 100k per month their profit is less than my sub 40k only sales per month.is this what we call efficient?

    4.but i admit somehow those shop love to be tax by gst.end user will pay all those tax and the shop can claim back the gst.put all the burden on the consumer and we will get extra profit.nice.

    5.oh think again gym have a cost actually.to buy those expensive equipment i was tax with gst and and all those beverage and supplement i sell in the gym was tax with gst.

    6.but there is no chance i will tax my customers with gst.to tax those people that dont have income,student with such tax is cruel isnt it?

  2. As witnessed in many advanced democratic countries, there is nothing to gain by always having one same coalition Party to govern the country as this will lead to complacency & corruption. This is clearly that example.

  3. Tun,

    Assalamualaikum. Saya telah bersedia untuk menukar kerajaan yang dipimpin BN. Makin lama dibiarkan, makin tinggi kadar jenayah di negara kita kerana perasuah dan penerima rasuah akan melahirkan anak-anak generasi yang buruk akhlaknya. Negara kita pun semakin mengecil sebab asyik kena gadai sahaja!

  4. Doa supaya Pakatan Harapan mengambil alih kerajaan yg akan dtg. Tubuh rci gst, 1mdb, src, felda dan milik negarakan harta penjenayah negara i.e anggota pentadbiran, pengurusan atasan perkhidmatan awam yg menipu, menyeleweng dan rasuah. Tak sabar nak mengundi nih. Dah gatal tangan.

  5. Salam Tun.

    1. GST langsung tiada kesan kepada PM yang bergaji lebih RM 16,000 sebulan.

    2. Juga tiada kesan kepada penasihat-penasihatnya seperti Irwan Siregar, Idris Jala yang semuanya ada menerima habuan wang lebih 17 juta setahun.

    3. Kepada rakyat yang bergaji harian lebih kurang RM 50.00 kebawah akan terkesan. Golongan ini sepatutnya mengundi Pakatan Harapan yang berjanji menghapuskan GST.

    4. Kepada rakyat yang tidak terkesan ingatkan bahawa segala hutang yang tidak rakyat buat akan di tanggung hingga ke warisan kita tinggalkan.

    5. Lebih teruk kita telah bersubahat dengan penjenayah yang mencuri wang rakyat jika kita menyokong dengan mengundinya.

    6. Malah kita rakyat telah mengingkari perintah Tuhan yang mengharamkan perbuatan mencuri jika terus mengundi memenangkan Parti yang memberi kuasa kepadanya.

    7. Kita mungkin kata GST tidak memberi kesan kepada kita dari jumlah wang di kenakan. Tetapi perlu di ketahui bahawa akibat GST telah menaikkan harga barang.

    8. Di tambah pula dengan penurunan nilai ringgit maka kita pasti terpaksa membayar lebih mahal untuk barangan import.

    9. Semua ini kerana tiada kepercayaan terhadap seorang yang di gelar MO1 iaitu PM Malaysia.

    10. Cara ia berbelanja untuk dirinya serta menyebabkan hutang kepada kerajaan serta cukai bertambah dalam hidupan harian menyebabkan nilai ringgit jatuh.

    11. Semuanya kerana tiada kepercayaan terhadap seorang PM yang mengendalikan wang hasil negara maka nilai ringgit makin menurun.

    12. Rakyat kena terima hakikat bahawa semua ini akan dapat di pulihkan tampa bebankan rakyat hanya dengan menolak PM dan sekutunya pada Pru 14 nanti.

    13. Tuhan merahmati rakyat yang mematuhi perintahnya dengan menolak kejahatan kepada kebaikan.

    Wallahua’lam.

  6. 37. These hardcore supporters are not genuine and have not been tested before too, the result is similar to the dilenma of what the official elected pm, dsn and his cabinet, is facing now.

    38. Then they will ask, adakah ph ini penipu atau bodoh after ph won, and when next general election is called by ph beyond 2020, and the pembangkang will do the same to ph.

    39. Bak kata musato, negara kita memang berdaulat.

    40. Agong kita tetap berdaulat.

    41. Sultan kami memang berdaulat.

    42. Like they said, in politics, they are no permanent friends or enemies.

    43. If this saying is correct, then, politicians should not have made so much noises made in the media.

    44. There is no difference between gst bn and gst ph kerana ia tetap revenue income negara.

    45. To err is human.

    46. To forgive is divine.

    47. Henceforth, when general election is called, we will know what will happen in the next 5 years.

    48. The glass of water is half empty?

    49. The glass of water is half full?

    50. Ia adalah lebih selamat rahsia tu disimpan selama2nya to maintain political stability via future general elections.

  7. With all the power in najib’s hand its going to be an uphill battle for all of us to bring him down.Hopefully Allah will give us an upper hand this time around.And let the voice of the commoners be heard again. InsyaAllah…

  8. Lega rasanya apabila Tun menulis:-

    30. All those things which increase the cost of governance should be dropped. The 1MDB money can be recovered as we know where the money is. Najib will not do this as it means surrendering all the money he has taken. Rosmah Mansor, Jho Low and Riza Aziz and others who has got the stolen money must also surrender. Najib cannot get the money frozen by the Governments of Singapore, the U.S. and Switzerland. There must also be quite a lot in the U.K. as well. The frozen money will not be returned until Najib who stole it is no longer the head of the Malaysian Government.

    Yang jelas emej Agama, Bangsa (termasuk Masyarakat Bugis) dan Negara tercemar, akibat Kleptocracy yang diketuai Najib. Bertambah malang lagi, Agama Islam turut terpalit ‘najis’ apabila Ibadah-Haji dan Agamawan-Celebrity diperkudakan (dalam konsert Ya-Na-Na) untuk mengaburi kleptocracy.

    Semoga dengan tumbangnya regime Kleptocracy ini nanti, maka maruah, nama dan emej Agama, Bangsa (termasuk Masyarakat Bugis) dan Negara akan kembali harum dan dihormati.
    Jika WANG Rakyat yang lesap dari 1MDB dapat di ‘recover’ atau dikembalikan, maka tak perlulah kita, termasuk anak-cucu-cicit kita, dibebani dengan hutang-keliling pinggang ini.

    Terima Kasih Tun Dr.M, kerana masih sanggup berkhidmat untuk Agama, Bangsa(termasuk masyarakat Bugis) dan Negara.

  9. What is actual happened today with gst implementation is the trader shall make

    COST + GST = PRODUCT PRICE

    PRODUCT PRICE + 2nd.GST = USER PRICE (CONSUMER)

    so consumer actually need to pay for double gst or 12%.. While trader in actual fact do not pay the GST.. But later on Trader can claim with gomen.. So siapa yg untung.. Gimen Untung Sepatutnya tapi Trader Untung Berganda.. Welcome any comment..

  10. GST is relevant
    It is necessary for a Nation built up
    Malaysian needs Military Upgrading to Superiority

    BUT what is wrong is Najib involvement that lay No trust on this matters
    Najib was known to be dishonest ,A Thief involving with his family misappropriation of National Money as if these money is macam Bapak dia punya, Bini dia yg Belanja

    These is where BN , UMNO goes wrong
    These is the reason UMNO will collapse

    To safe UMNO is in the hand of UMNO members
    Najib must be arrested , interrogates and charged respectively even the family involves

    We say of No Doubts today of Najib is the Grand Thief
    Involving his family & friends
    These must be put a STOP and not let go without punished

  11. Najis’s only aim is to safeguard his hippo wife and his family from the long arm of law…he don’t care about Malaysian economy or people…he will make more fools in the country by giving mere RM100 or RM300 and steal in millions from the treasury till he dies.

    Malaysian are powerless and they are scared even to speak about the thief. really strange!!!

  12. I dont like gst.. I dont like najib n cabinet member.. Pak turut and for sure incapable to drive our nation to where is supposed to be placed..

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