19 April 2019

Conduct studies first before implementing new tax system

Efforts to change the tax system should be crafted after a thorough review. The government is urged to seek opinions from economists, employers and consumer associations before making a decision.

The proposal by the government to change the tax system in an effort to promote the use of local products lacks common sense. Although the government's efforts to promote local industries are welcomed, the government is advised to explain this new tax system before approving it.

The tax system is sensitive and indeed burdens the rakyat. The government should refrain from making hasty announcements of a new tax system, and later, be forced to withdraw it after receiving negative feedback as this will undermine the confidence of foreign investors. Do recall what happened when Pakatan replaced the GST with the SST without thorough study. Prices of goods climbed sharply.

Pakatan should draft policies to assist local industries to be more competitive and assist them to penetrate international markets. Whilst MCA was still part of the government, we encouraged cooperation between local companies and those in China under the “Belt and Road” initiative.

As a new government, Pakatan Harapan ought to be aware of their responsibility to look after and protect the interests and welfare of the rakyat. Desist from coming up with a position or making decision which burden the rakyat, which ultimately, compel the rakyat to tighten their belts and “give more time to it.”

We are concerned that the government will impose higher taxes on imported goods, in addition to the excise duties which have been slapped on imported goods. If so, would this not burden the people again?

Most people still remember the times in which the country's automobile industry was affected by  protection accorded to Proton. At that time, the effort was aimed at assisting the locally-manucatured car industry. But instead, it caused a lot of difficulty as many were forced to purchase a car of dubious quality as it  was less expensive compared to overpriced  imported cars. Finally, it was the masses who suffered, and only a handful of Tun Dr Mahathir Mohammad's cronies reaped the benefits.

Nicole Wong Siaw Ting
MCA National Youth Chairperson

-MCA online-