Tax, subsidy changes will squeeze middle class - Syed Saddiq
BUDGET 2024 | The increase in taxes and changes in subsidies, as announced during the tabling of Budget 2024 today, will suppress the middle-class income group which makes up the majority of Malaysians, said Muar MP Syed Saddiq Syed Abdul Rahman.
Speaking at a press conference at the Parliament lobby, Syed Saddiq questioned if the sales and service tax (SST), which was proposed to be increased from six percent to eight percent, is a disguise for the controversial goods and service tax (GST)...
BUDGET 2024 | The increase in taxes and changes in subsidies, as announced during the tabling of Budget 2024 today, will suppress the middle-class income group which makes up the majority of Malaysians, said Muar MP Syed Saddiq Syed Abdul Rahman.
Speaking at a press conference at the Parliament lobby, Syed Saddiq questioned if the sales and service tax (SST), which was proposed to be increased from six percent to eight percent, is a disguise for the controversial goods and service tax (GST).
“Why I say GST is disguised as SST is because previously, the government insisted that it didn’t want (to reintroduce) GST because there is a deficit of eight to nine billion where if you implement SST, you won’t get as much money as GST.
“So because they don’t want to reintroduce GST, they increase the SST rate.
“It is clear that (SST) is the ‘mask’ for GST,” he said.
Earlier, Anwar said the increase in SST does not involve the food and beverage industry and telecommunications.
The affected industries include logistics, brokerage, underwriting and karaoke.
Anwar also said the government will impose a luxury tax that will be at a rate of between five percent and 10 percent.
Subsidies
Syed Saddiq bemoaned that the poultry subsidies which will be removed once domestic supply stabilises is not a small cut as it involved billions of ringgit.
While pointing out that the government will be introducing targeted subsidies, he reminded Putrajaya of the classification of income classes in different states.
“For instance, T20 in Kelantan earns a household income of RM8,000.
“But if it’s in Kuala Lumpur, a household income of RM8,000 would be classified under the B40 group. That means the gap is so huge.
“So when we hear that, for instance, (the price of) chicken and eggs will continue to increase and pressure the people with the cost of living, diesel and other, this clearly shows that the cost of living of the people will continue to increase next year, especially for the M40 group.”
Decreasing PTPTN discount
He also lambasted the government for its “forgotten promises”, especially pertaining to the reduction of the repayment of the Higher Education Loan Fund (PTPTN).
“I’m sure the youth will not forget about the promises made about PTPTN.
“The discount for the repayment has been decreased from 50 percent to 20 percent and just now it was only 10 percent.
“This is something very basic. Last time, they announced way more than this.”
He was referring to the announcement by Anwar that PTPTN borrowers, who repay at least 50 percent of their remaining loans, will be given a 10 percent discount.
A 15 percent discount will be offered to those who opt for a direct debit or salary deduction scheme.
‘Confusing, lacks details’
Meanwhile, Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal said he was confused over the government’s plan to rationalise subsidies.
Wan Ahmad Fayshal, who is also Bersatu Youth chief, took the government to task, saying the latter did not provide any information on the implementation of the mechanism.
"Although (some matters have been) touched upon in the presentation of the 12th Malaysia Plan Mid-Term Review, I hope he (Anwar) would explain it again (in Budget 2024) but it did not happen.
“For instance, regarding the investment which was hyped before, on Tesla and so on, because we want to know if it really goes to the people.
“We will wait for the debate session to listen to the explanations.”
Another PN parliamentarian Awang Solahuddin Hashim had questioned the increase in allocation for the Prime Minister Department (PMD).
“I glanced through the budget briefly, and the increase in allocation for PMD caught my eye. Why is there an increase of over RM7 billion compared to last year?” he queried.
Awang, who is also Pendang MP, asserted that he will also be focusing on allocations which will be given to the Defence Ministry.
From the budget of RM393.8 billion announced by Anwar, over three-quarters of it (RM303.8 billion) will be allocated for operational expenditure, and RM90 billion for development expenditure.
READ MORE: What's in it for you in Budget 2024?
