SHAH ALAM, 27 AUGUST: The government does not have to implement the Government Service Tax (GST) which burdens the people financially if it is able to reduce the mismanagement of government funds for the nation’s various expenditures and eradicate corruption.
The MP of Klang, Charles Santiago reiterated that with thrifty spending via an effective and transparent management mechanism, the government will be able to use the nation’s funds for programs that benefit the people.
“When the government has run out of funds, they are then compelled to implement the GST.” said Charles when contacted by TVSelangor.
Before this, the government announced that if the GST is implemented, then about 40 types of essentials especially food and beverages will not be subjected to any taxes.
Among the essentials which will be exempted from taxes include baking powder, rice, sugar and fish.
According to Charles, there is no guarantee on the part of the government that there will not be any price hike on foodstuff in the future when the GST is implemented even though it was claimed that foodstuff will be given an exemption.
He said that the impact of the GST and the price hike of goods will be experienced more significantly by people from low income and stable income groups.
He added that if the government is efficient in the usage of taxpayers’ money, it can then help in increasing the allocation of subsidies, which is more beneficial than implementing the GST system.
“This rise in costs will worsen the situation and impoverish the people.” He said.
Charles also said that the government has to come up with other more effective alternatives to increase the country’s revenue.
“The government needs to reduce the amount of corruption and carry out the sales of AP permits so that it can help lessen the burden of the people.” He said.
Before this, Pakatan Rakyat leaders have emphasised that the government is capable of saving RM28 billion if it succeeds in handling illicit outflow of funds, mismanagement and corruption in accordance to the Auditor General’s Report.
