In a political grandstanding gesture, the Penang state government announced its plans to take legal action against the Federal government for its decision to implement the Goods and Services Tax on April 1, 2015. The rationale of the Penang state government for its decision to sue is that the rakyat should be given more time to understand and adapt to the imminent “negative impact” of the GST.
The GST had been considered by the government and had been bandied around the political landscape for the last 30 years. It has twice been postponed, in 2007 and in 2011. Finally, the government announced its decision to implement the GST in 2013 and the Goods and Services Tax Act was passed by Parliament in 2014. Even the Opposition Leader had supported GST when he was the Finance Minister.
How much more time is needed to understand and adapt to the GST?
Between the announcement in 2013 and its implementation in April 2015, the government had run numerous campaigns and courses nationwide, through the Ministry of Finance and its agencies to explain the GST. That 300,730 business entities had registered for the GST is a clear indicator of the acceptance of GST by the business community. Accounting, taxation and ICT firms had made available the GST-compliant softwares and hardwares to facilitate the transition to the GST-environment.
Unfortunately, the process of understanding and adapting to the GST had been hindered and hampered by misinformation and negative campaigns run by the opposition. The rakyat were told that GST would cause hyper-inflation, stagflation, impoverish the poor, etc.. The opposition is so focussed on opposing the GST for political mileage, conveniently ignoring the overall benefits of the GST to the rakyat and the nation.
There are no legal grounds for the Penang state government to sue the federal government over the GST. The federal government has the prerogative of imposing taxes as provided by the constitution. That the suit would certainly fail in the court of law only reflects that the action is merely a cheap, pathetic political gambit.
DAP claimed that the GST should not be implemented because of the threats by extremist groups, racism and the continued use of “draconian” laws. What does GST have to do with such conditions? Only a naive quixotic person would use or be taken by such a rationale.
The Chief Minister of Penang was also quoted urging the government to reduce power tariffs due to the falling fuel prices. Would it not be more appropriate for the CM to call the IPPs to reduce the cost of power supplied to TNB? Is the CM’s reluctance to do so due to some IPPs being big-time donors to DAP political fund?
If the Penang state government decided to sue the federal government, who would foot the legal bill? Is it fair for the taxpayers to pay for such foolish and pathetic political action? Or will it come from DAP leaders’ own pockets?
DAP Malaysia and PAP Singapore are of the same species; they have the same genetic materials and share common worldviews. Why did members of that species not oppose the implementation of GST in Singapore? Is it because the GST in Singapore was implemented by a government dominated by a “superior race” and that GST in Malaysia is implemented by a government dominated by an “inferior race”?
DAP’s opposition to GST is a subliminal manifestation of its racial politics. To be a credible political party in this multiracial nation, the DAP should get rid of its racial “superiority” complex or in local slang, its “kiasu” attitude. It is timely to remind DAP of the old Malay adage: “di mana bumi dipijak, di situ langit dijunjung”.
Sharifah Begum Syed Mohideen
Bayan Lepas
