Mon. Oct 21st, 2019

Buletin TTKM

BERSANDAR FAKTA, BERCORAK SANTAI

GST vs SST: The Missing RM23 billion that Guan Eng does not know where it went.

2 min read

By: Anti Wayang

Our Finance Minister does not seem to understand why there is a RM23b gap between GST and SST collections.

Let’s get the basic out of the way first so we can agree on this:

Because zero-rating GST since last month did not see any drop in prices and some prices actually increased, imposing two new taxes – a 10% sales tax and a 6% service tax – WILL INCREASE prices for some goods and services. There will also be no reduction in prices compared to prices today

Okay, since we agree on the above, let’s move on.

– The additional RM23b reduction in collection is because businessmen will now get to evade taxes because the self-policing system of GST no longer applies.
– Businessmen will now charge and collect service tax but will not remit to the government – just like before.
– The underworld and black economy (ah long, robbers, prostitutes and pimps, triads, pirated DVD sellers) which do not declare their business will no longer be paying GST when they buy stuff.
– Also, the tourists and foreign workers who were previously paying GST no longer needs to pay any tax as they will not be buying goods such as white-goods or cars which will be hit by sales tax.

That is where the RM23b gone too while us everyday ordinary people have to contend with higher prices – even higher than before GST was zero-rated.

That is where your RM23b went. But did it go to the right persons?

Do you understand now, Mr. Finance Minister?

Can the Finance Minister give an assurance that no prices will increase after SST is implemented in September? Can he promise that prices will drop in September?

If not, just admit that you have screwed us, screwed our economic system and put us back into the dark ages of a tax system that few countries in the world still uses. -TTKM-

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