GST And Wong Chen For Dummies

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Judul : GST And Wong Chen For Dummies
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GST And Wong Chen For Dummies


Kelana Jaya PKR Member of Parliament, Wong Chen, yesterday, tried to look smart and talked about GST which end up in a real mess. Pakatan Harapan leaders are very confused about GST. Read FMT here for details. He said,
"Basically, we’ll go back to Malaysia’s pre-GST days, but retain the GST’s reporting system so that companies can’t escape compliance reporting. Going back to pre-GST days also means we will consider reintroducing the Sales and Services Tax (SST)."
What Wong Chen means is if you vote Pakatan Harapan and you will get both the SST and GST at the same time. Presumably, keeping the GST system means that Pakatan Harapan can easily increase back the GST as and when they like it. Secondly, he said that they may reintroduce back the SST. So Malaysians will end up with BOTH the GST and the SST systems at the same time. Bravo!

Then he said,
"We won’t throw away the GST’s accounting system, which has cost businesses and the government a lot of money. Abolishing the GST is therefore necessary to revive the market and the waning economy."
Firstly, he said that that the GST system has cost the government and business a lot of money. Then he said Pakatan Harapan will retain the GST system but may reduce it to zero, as it is a great system to catch tax evaders. So the govt and businesses will still have to spend money to operate the GST system.

This change will surely cause another disruption to prices in the market and will drive up inflation. Petrol prices going down has taught us that traders will not reduce prices but will use any change in the system as an excuse to increase prices further.

This time they will give the excuse that the reintroduction of the SST means no change to tax but they will now have to spend more money administer the GST. So they will have to increase prices as cost has gone up.

Lastly, Wong Chen lied when he said no other taxes were reduced or abolished when GST was introduced. FMT reported that,
He said the fundamental flaw with the GST was that its introduction did not come with a reduction in other taxes, resulting in the sucking out of an extra RM25 billion a year from consumers and businesses.
In actual fact, when GST was first introduced, the SST was abolished, Corporate and personal income taxes were also reduced while BR1M, a form of negative taxation, was increased. This is yet another example to prove that Pakatan Harapan is not just a liar but are confused and has no idea what they are doing. Certainly does not give confidence to the rakyat or investors at all.


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