Tuesday, November 26, 2013

GST is no magic cure for bankruptcy, say MPs

NOVEMBER 26, 2013
Malaysia will still face bankruptcy even after the goods and services tax (GST) is implemented if corruption and wastage are not addressed first, Pakatan Rakyat MPs said today.
PKR's Rafizi Ramli, DAP's Tony Pua and PAS's Khalid Samad cautioned that the GST was not a "miracle drug" to fix the nation's finances.
They were responding to Prime Minister Datuk Seri Najib Razak’s statement yesterday that the GST had to be implemented in order to avoid bankruptcy.
"Corruption, wastage and lavish spending are main reasons why this country is facing bankruptcy," he said.
"Even if we implement the GST, it does not mean that we won't be bankrupt," Pua said.
Rafizi insisted that no matter how much money was pumped into the country through GST, the risk of bankruptcy would still be there.
"This is due to corruption, the failure of the Government to jump-start the economy and the failure of the education system.
The PKR's strategy director also took Najib to task for his “flip-flop” answers regarding the country's financial status.
"The PM says that if we don't have GST, then we will be bankrupt. But yesterday, Deputy Finance Minister Datuk Ahmad Maslan told Parliament that our finances are stable and that Malaysia has no financial problems as our debt ceiling is low.
"So who is right? Are we facing bankruptcy or are we healthy financially?"
 If Malaysia had no financial difficulties, then why impose the GST, Rafizi asked.
Khalid claimed that the nation's financial state was because “we have people who have fallen asleep at the wheel”.
 "First, they said crime rate was low. Then they told us that we are almost in a state of emergency because former detainees under preventive detention are taking over the streets, which was their excuse to reintroduce draconian laws.
 "And now, it is the same thing with our economy. It is unfortunate that the only way to increase income is to increase taxes."
The Shah Alam MP also took a swipe at the PM's wife, Datin Seri Rosmah Mansor, who recently came under fire for using the Government's private jet.
 "The country is facing bankruptcy and yet, we still spent millions sending Rosmah all around the world in private jets.
"We need good governance and those in power also shouldn't hide the state of our finances from the public.” – November 26, 2013.
~ The Malaysian Insider

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