Saturday, March 13, 2010

Wenger claims credit for shutting down GST bill

No tabling of GST Bill for second reading

KUALA LUMPUR: The Goods and Services Tax (GST) Bill will not be tabled for the second reading when Parliament sits tomorrow.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the Government needed more time to gather feedback from the rakyat.

“We want the public’s opinion on the GST,” Husni told reporters after opening the Kuala Lumpur Malay Chamber of Commerce’s annual general meeting yesterday.
The Bill was first tabled in Parliament last December.
On when it would be tabled, Husni said: “It will depend on our engagement with the public and acceptance of the rakyat on its implementation.
“We do not want to put a time frame on that.”

A couple of days ago, the dnightcaller had asked my opinion on the GST bill and I was uneqoivical in denouncing the measure as being described in the following :-


PS Nightcaller: To me GST is another product of a person who has 0 knowledge of practical finance and economics in the Malaysian context. Its the worst decision and will provide a Raya, Deepavali, Christmas and Chinese New Year bonanza for the Opposition. You guys are lucky!"

Today it came as no surprise that the GST bill was effectively killed until BN can secure a super strong mandate from the election. Even after that, the premise of putting a GST based tax is ridicolous in Malaysia because I Wenger J Khairy say so. The government should stop making policy decisions outside what I dictate as being right. 

In the case of GST I have been consistently opposed to it. Why?

  1. Investment to set up and monitor GST collection is very high and people wont do it
  2. As it is companies are faxing on the standard income tax, why wont they fake on the GST
  3. No clear definition on how business to business transactions will be taxed. If those are taxed at GST then we will get massive inflation. 
  4. Benefit of collecting an extra billion or so will be offset by the cost
  5. Programme was poorly crafted

So rather than promise to implement something only to back out of it, the Government must have a clear set of policies and implement according to it. But what policies? 

Aaah taht these the problem. They asked McKinseh and see what happened? They should just ask Wenger and I'll lay  it out.  No need for NEM and all of that. Just follow WENOM.

Well lets see whether I can come out with the next installment for WENOM - The Principle Agent Problem

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