Guan Eng flayed for 'causing public panic' over GST
Published: May 30, 2013 4:59 AM | Updated: May 30, 2013 5:06 AM
Penang BN has bombarded Chief Minister Lim Guan Eng for "misleading" the public on the Goods and Services Tax (GST) issue as the federal government has yet to announce the matter.
Penang BN has bombarded Chief Minister Lim Guan Eng for "misleading" the public on the Goods and Services Tax (GST) issue as the federal government has yet to announce the matter.
BN Bagan division secretary Dr Tan Chuan Hong said Lim should "mind his words and deeds so as not to become an ignorant leader" and comment only after the details have been announced.
"Lim as Penang CM should be prudent in his words and deeds to avoid causing panic and worries to the public," Tan said in a statement.
In developed countries, GST is part of a reasonable and comprehensive tax structure, added Tan, who is also a certified Registered Financial Planner (RFP) trainer.
Besides avoiding the problem of merchants who are involved in tax evasion, it also stimulates a fair competition platform within a nation, he stressed.
"In addition, with the ‘spend more, pay more’ tax principles, those who spend more will have to pay more taxes. It does not affect the low-income groups," Tan noted.
"Generally, GST will not impact daily supplies and controlled items.
"For instance, (there will be) no tax imposed on a cup of coffee if one drinks in an ordinary coffeeshop; if one drinks at premium brand stores, one will have to pay the tax," he added.
In a statement dated May 21, Lim (left) claimed - among others - that taxes would be imposed on the purchase of underwear.
The DAP secretary-general added that the people would have to bear about an extra RM1,000 annually due to the imposition of the tax.
He also said that the GST rate would make it easy for the federal government to hand out 1Malaysia People’s Aid (BR1M) of RM1,200 as it has promised.
This is because the government stands to earn an extra RM5,000 from every household by implementing the tax, Lim alleged.
'Lim is worrying the public'
Lim had been responding to Minister in the Prime Minister’s Department Idris Jala, who recently hinted that the government could earn up to RM27 billion in extra revenue by imposing a seven percent GST rate.
However, Tan said that Lim had no basis for making the comment with any tax details.
"His comment is not only causing panic, but it also worries the public," Tan added.
"Also, (the act of) buying ordinary underwear will not be affected by the tax. However, if one is buying underwear at premium brand stores, one will need to pay tax," Tan explained.
"Lim possessed an accountancy qualification, and he as a leader, too, should have knowledge in taxation," Tan mocked.
Tan then sang praises of the RM500 BR1M cash awards paid out to the low-income groups and senior citizens before the elections.
"Anyone is entitled as long as one is qualified. This is different from the Penang government where Pakatan Rakyat only pays RM100 to benefit Penang voters, not the Penang people; and this clearly shows that it is money politics," he shot at Lim.
“In addition, GST virtually helps in promoting the tourism industry. It even pushes the nation’s shopping paradise to its summit," Tan further said.
"Tourists will get tax rebates after their purchases. This will boost tourism, and in turn benefits the development of other industries including the hotel, food and beverage industries.”
BN Bagan division secretary Dr Tan Chuan Hong said Lim should "mind his words and deeds so as not to become an ignorant leader" and comment only after the details have been announced.
"Lim as Penang CM should be prudent in his words and deeds to avoid causing panic and worries to the public," Tan said in a statement.
In developed countries, GST is part of a reasonable and comprehensive tax structure, added Tan, who is also a certified Registered Financial Planner (RFP) trainer.
Besides avoiding the problem of merchants who are involved in tax evasion, it also stimulates a fair competition platform within a nation, he stressed.
"In addition, with the ‘spend more, pay more’ tax principles, those who spend more will have to pay more taxes. It does not affect the low-income groups," Tan noted.
"Generally, GST will not impact daily supplies and controlled items. "For instance, (there will be) no tax imposed on a cup of coffee if one drinks in an ordinary coffeeshop; if one drinks at premium brand stores, one will have to pay the tax," he added.
In a statement dated May 21, Lim (left) claimed - among others - that taxes would be imposed on the purchase of underwear.
The DAP secretary-general added that the people would have to bear about an extra RM1,000 annually due to the imposition of the tax.
He also said that the GST rate would make it easy for the federal government to hand out 1Malaysia People’s Aid (BR1M) of RM1,200 as it has promised.
This is because the government stands to earn an extra RM5,000 from every household by implementing the tax, Lim alleged.
'Lim is worrying the public'
Lim had been responding to Minister in the Prime Minister’s Department Idris Jala, who recently hinted that the government could earn up to RM27 billion in extra revenue by imposing a seven percent GST rate.
However, Tan said that Lim had no basis for making the comment with any tax details.
"His comment is not only causing panic, but it also worries the public," Tan added.
"Also, (the act of) buying ordinary underwear will not be affected by the tax. However, if one is buying underwear at premium brand stores, one will need to pay tax," Tan explained.
"Lim possessed an accountancy qualification, and he as a leader, too, should have knowledge in taxation," Tan mocked.
Tan then sang praises of the RM500 BR1M cash awards paid out to the low-income groups and senior citizens before the elections.
"Anyone is entitled as long as one is qualified. This is different from the Penang government where Pakatan Rakyat only pays RM100 to benefit Penang voters, not the Penang people; and this clearly shows that it is money politics," he shot at Lim.
“In addition, GST virtually helps in promoting the tourism industry. It even pushes the nation’s shopping paradise to its summit," Tan further said.
"Tourists will get tax rebates after their purchases. This will boost tourism, and in turn benefits the development of other industries including the hotel, food and beverage industries.”
View Comments0