COME OUT FROM YOUR PLUSH, AIRCON ROOMS & FEEL THE SUFFERING OF ORDINARY MALAYSIANS - ALLY MCA DARES 'EYES WIDE SHUT' ANWAR & 'PEN-PUSHING' AMIR OVER CLAIMS SST NOT A BURDEN, WON'T CAUSE INFLATION

 

COME OUT FROM YOUR AIRCON ROOMS & FEEL THE SUFFERING OF ORDINARY MALAYSIANS - ALLY MCA DARES 'IGNORANT' ANWAR & AMIR OVER CLAIM SST NOT A BURDEN, WON'T CAUSE INFLATION

Written by Tan Teik Cheng

SST won’t burden people? Finance Minister’s eyes wide shut

Claims by Minister of Finance II Dato’ Seri Amir Hamzah Azizan that the “improved” sales and service tax (SST) will not burden people clearly reek of ignorance and are not in sync with the common layperson.

The MoFII claimed that improving the SST was an immediate step that allowed the government to focus on existing approaches to increase revenue and strengthen the country’s fiscal position, which at the same time, would not burden the people. His remarks are indicative of top-ranking pen-pushing bureaucrats who sit in the comfort of air-conditioned rooms and are oblivious and out of touch with the hardships which the common layperson are confronted with day-to-day.

Even if the SST was maintained at 6%, inflation or price jumps cannot be avoided, and what more, the Malaysia Madani has raised the SST to 8%, dealing a double blow to citizens.

So long as the price of one item climbs, there will be a domino effect, whereby prices of other goods and services will similarly be driven upwards. Spiking the SST to 8% will only cause inflation to leap further.

To cite an example: If a merchant sells a product, due to the SST coupled with transportation charges and other new taxes, the merchant is compelled to raise the price and pass the cost to consumers. Now that the Malaysia Madani government has hiked the SST to 8%, this tax inertia leaves merchants without any choice but to correspondingly increase the prices of goods and services.

In such circumstances, how may people, especially those from B40 and M40 households withstand the pressure of daily living costs?

Escalating the SST will certainly cause the prices of goods to soar. Hence, how could the MoFII even assume that this move will not burden people’s lives?

In the Dewan Rakyat, MCA’s Members of Parliaments ie MCA President Datuk Seri Ir Dr Wee Ka Siong and MCA Vice President Dato’ Sri Dr Wee Jeck Seng have repeatedly highlighted the chain reaction effect which would cause the prices of goods and services to ascend. Unfortunately, the MoFII and other Ministers have no qualms whitewashing the pains of the reality on the ground. Such conduct is unbecoming of public figures.

The Malaysia Madani government must also be taken to task for announcing a slew of taxes within a short period of time which overwhelm the rakyat. These include the SST on soda drinks which has been lifted to 8%, low value goods tax (LVGT) at 10%, capital gains tax at 10%. The high value goods tax (HVGT) that takes effect in May is set at 10%. Similarly, consumers will soon be staring at higher bills for utilities and others.  

Besides parking fees, food, communications, and others, the government should therefore expand the areas for SST exemption,

As the public struggles with daily livelihood hardships, perhaps the government could put a moratorium on the SST hike or exempt certain segments from the SST to enable the public some breathing space.

Written by Tan Teik Cheng, MCA Vice President

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