SHAH ALAM, 21 Oct: The move to postpone the implementation of the Goods and Services Tax (GST) in Pakatan Rakyat’s Alternative 2014 Budget would allow for the people’s disposable income to increase, especially the low and middle income earners.
The increase in disposable income for the said group would cause the purchasing power of the people to be high, thus increasing production which would ultimately have a positive impact on the Gross Domestic Product (GDP).
Assemblyman for Bandar in Pahang, Azan Ismail said the postponement in the implementation of the GST would directly help strengthen the country’s economic growth for 2014 by 5.2 percent, as predicted by PR.
“The postponement of the GST will not only help protect the interests of the people, but in reality, it can stimulate our economy,” he said when contacted by TVSelangor today.
Azan said this when he was asked to comment on the summary of the PR Alternative Budget 2014 by Opposition Leader, Datuk Seri Anwar Ibrahim in Parliament today.
Azan who also an economist said the implementation of the GST is often the preferred choice of the middle class because they assume that the GST can possibly reduce their burden in paying taxes to the government.
“The rich consider the GST system as ‘fairer’ because they want to transfer the tax burden to all, including low and moderate income earners.
“The reality is the rich often get various tax breaks, either legally or otherwise, in many ways. We also know that there are big companies that get huge tax breaks as a deduction for donations given to Barisan Nasional (BN),” he said.
Azan said the 5.2 percent GDP forecast made by PR is based on studies and forecasts of global economic growth.
“I was initially quite surprised with the forecast of 5.2 percent, but this evidence is seen based on responsible projections based on the global economic growth and for the positive growth of the country’s economy, not on a whim,” he said.
