MCA today said the Ministry of Finance’s (MoF) decision to indefinitely defer the implementation of the high-value goods tax (HVGT) casts doubts on the government’s credibility.
This, said MCA Youth Secretary General, Saw Yee Fung was because it has completely sidelined public opinion when it increased the Sales and Service Tax (SST) and expanded the tax base to introduce a low-value goods tax (LVGT).
"How is the government’s conduct different from conspicuously robbing the poor to feed the rich?
"Deputy Finance Minister Lim Hui Ying confirmed that the HVGT will not be executed come May 1, 2024 due to a need for the government to continue engaging with the industry to ensure the tax principles and legislation can be formulated and drafted carefully.
"The government’s decision is akin to robbing the poor to benefit the wealthy. On one hand, the Madani government deprives the poor of their wealth via successive new or increased taxes or by other methods which will only exacerbate the gap between the T20 and the B40 and M40. This worsens social inequality." she said in a statement.
She said the government should do more to take measures to promote economic inclusiveness and ensure that everyone has equal opportunities for economic parity.
This would not only be beneficial for societal stability and harmony but also contribute towards sustainable economic growth, she said.
Saw said recent government decisions have sparked widespread questions and controversy.
On one hand, she said, the government spares no effort to promote new taxes and tax measures to increase revenue, such as implementing the LVGT and raising SST rates.
"However, when it involves the luxury goods tax, the government claims there is a need for more engagement and consideration. Such an approach arouses suspicion about its motives," she added.
She stressed that upping and expanding the SST whilst implementing the LVGT had a tremendous impact on society as a whole.
In particular, the middle and lower-income groups are hardest hit, she said.
Set amidst a difficult backdrop of a depreciating Malaysian Ringgit and an economic slowdown, she said the government's disregard for the call to postpone the SST while 'heeding industry opinion' on the HVGT is perplexing.
"The HVGT mainly involves a tiny segment of society, namely, the T20, as well as the T10 or T5 within the T20 range.
"These people are fully capable of bearing this tax burden, even effortlessly. However, why is the government showing leniency towards high-income groups who can easily afford the HVGT, while slapping taxes on the daily lives of ordinary people?
"No rocket science is required to comprehend that luxury goods are not daily essentials in people’s lives. Hence their impact on daily life is little comparatively."
Saw claimed that double standards by the government have raised doubts among the rakyat about its integrity and fairness.
"We also begin to wonder whether the government only demands compliance with tax regulations from ordinary citizens while being lenient towards the wealthy.
"These doubts and concerns need to be seriously addressed by the government. Clear explanations and responses need to be provided to uphold social fairness and justice," she added. - The Vibes, March 30, 2024
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